The Gap: A Cheap Stock Lacking A Catalyst
The Gap has outperformed the S&P 500 with a 56% total return since November 2023, driven by strong margin improvements. GPS has achieved substantial EPS growth through maintaining higher operating mar...
Fiscal Year: March - February
The Gap, Inc. (GAP), listed on the NYSE, has a market capitalization of $. As of Nov 19, 2025, the stock is trading at $23.45 per share, offering investors a clear view of its current market value. The Gap, Inc. is a prominent player in the industry sector, attracting both institutional and retail investors due to its performance and potential.
With a P/E ratio of 10.09, investors can assess the stock's valuation in comparison to its earnings. A P/E ratio is a crucial indicator for value investors, showing whether the stock is over or undervalued relative to its current earnings. The Gap, Inc. also offers a dividend yield of 2.82%, making it an attractive option for income-focused investors who seek regular dividends.
Our Discounted Cash Flow (DCF) analysis reveals that The Gap, Inc. (GAP) may be overvalued compared to its intrinsic worth. However, to see the exact DCF fair value, please Login or Upgrade for access.
The proprietary SS Score for The Gap, Inc. is a unique metric that analyzes the company's financial health and growth potential. The score takes into account critical factors such as revenue growth, net income, free cash flow (FCF) compound annual growth rate (CAGR), the trend of shares outstanding, and the debt-to-FCF ratio. This helps investors to make a more informed decision, as an undervalued stock might still have poor financial fundamentals.
To view the detailed SS Score for The Gap, Inc., Login or Upgrade for access.
The Price to Free Cash Flow (P/FCF) ratio for The Gap, Inc. is 11.39, offering insights into how much investors are paying for the company's free cash flow. A lower P/FCF ratio typically suggests that the stock is undervalued, while a higher ratio may indicate overvaluation.
In summary, The Gap, Inc. (GAP) has shown consistent financial performance, as illustrated by the financial charts above, which track its revenue growth, net income, free cash flow, and shares outstanding over the past several years. These metrics provide investors with key insights into the company's past and projected future performance. Investors should use the SS Score alongside the DCF Fair Value to make better-informed decisions about whether to buy or hold the stock.
*This analysis is for informational purposes only and does not constitute investment advice. Always read the company's 10-K filings and do your own research before making any investment decisions.
Whether The Gap, Inc. (GAP) is a good stock to buy depends on various factors, including its financial health, market conditions, and your investment strategy. Our analysis indicates that the stock may be overvalued compared to its intrinsic value. However, it is important to assess the SS Score and review the company's fundamentals before making any investment decisions.
The fair value of The Gap, Inc. (GAP) is determined through our Discounted Cash Flow (DCF) analysis. This value represents the intrinsic worth of the stock based on its expected future cash flows. To view the specific fair value, consider subscribing to our service for complete access.
The SS Score is a proprietary financial quality metric that assesses factors such as revenue growth, net income, free cash flow growth, and debt levels. It helps investors evaluate the overall financial health of The Gap, Inc.. To access the full SS Score, consider upgrading your subscription.
The Gap, Inc. is a significant player in the industry sector, with a market capitalization of $ and a competitive P/E ratio of 10.09. Investors should compare these metrics with industry peers to gauge whether The Gap, Inc. is outperforming or underperforming within its sector.
The Gap has outperformed the S&P 500 with a 56% total return since November 2023, driven by strong margin improvements. GPS has achieved substantial EPS growth through maintaining higher operating mar...
Stifel upped its price target on Tesla (TSLA) to $508 from $483 on better expectations for the Mag 7 company's autonomous driving runway and earnings growth. Diane King Hall offers a look at the road ...
The Gap, Inc. is going to report its fiscal Q3 results soon. The main focus point is Gap's tariff strategy. Tariffs on Vietnam and other sourcing countries will start to affect margins, shifting eyes ...
SAN FRANCISCO , Nov. 12, 2025 /PRNewswire/ -- Gap Inc. (NYSE: GAP) today announced that its board of directors has authorized a fourth quarter fiscal year 2025 dividend of $0.165 per share, payable on...
The New Campaign Invites Women to Honor Everyday Victories and Care for Themselves During a Busy Time of Year SAN FRANCISCO , Nov. 4, 2025 /PRNewswire/ -- Athleta, a Gap Inc. (NYSE: GAP) company and l...
SAN FRANCISCO , Oct. 30, 2025 /PRNewswire/ -- Gap Inc. (NYSE: GAP) will report its third quarter fiscal 2025 financial results by press release on November 20, 2025, at approximately 1:15 p.m. Pacifi...
SAN FRANCISCO and SUNNYVALE, Calif. , Oct. 9, 2025 /PRNewswire/ -- Gap Inc. (NYSE: GAP) today announced a multi-year partnership with Google Cloud to accelerate its human-centered digitally-enabled te...
Creators can now earn commission and engage with Gap Inc.'s iconic brands – Old Navy, Gap, Banana Republic and Athleta – like never before SAN FRANCISCO , Oct. 8, 2025 /PRNewswire/ -- Gap Inc. (NYSE: ...
U.S. shoppers are expected to keep spending online at record levels this holiday season, but spending growth itself might slow and the discounts might not be as steep as retailers and customers try to...
In celebration, Athleta unveils the Kristin Juszczyk-designed Train Free Sports Bra - created to empower women in motion, with proceeds supporting Komen's mission to end breast cancer. SAN FRANCISCO, ...
Gap CEO Richard Dickson joins CNBC's 'Money Movers' to discuss the retailer's turnaround progress, strategies to offset tariff pressures, and expansion into beauty and accessories
In trading on Friday, shares of The Gap crossed below their 200 day moving average of $22.42, changing hands as low as $22.24 per share. The Gap shares are currently trading off about 2.3% on the day.
Industry Icons Appointed to Contribute to the Company's Growth SAN FRANCISCO , Sept. 17, 2025 /PRNewswire/ -- Gap Inc. (NYSE: GAP) today announced the appointment of Deb Redmond and Michele Parsons as...
SAN FRANCISCO , Sept. 15, 2025 /PRNewswire/ -- Gap Inc. (NYSE: GAP) today announced the appointment of Jody Gerson, Chairman and CEO of Universal Music Publishing Group (UMPG), to the company's Board ...
OTTAWA, ON , Sept. 15, 2025 /PRNewswire/ -- Intouch Insight has released the second edition of its Third-Party Delivery Study , showing that food delivery continues to evolve.
Specialty apparel retailer Gap Inc. now offers Klarna's payment options to U.S. shoppers across its four brands, including Old Navy, Gap, Banana Republic and Athleta. When shopping online or in-app, U...
The Gap, Inc. stands out as a top value opportunity in retail, benefiting from its focus on affordable basics despite sector headwinds. The company has achieved six straight quarters of positive comps...
The Gap, Inc. (NYSE:GAP) Goldman Sachs 32nd Annual Global Retailing Conference 2025 September 4, 2025 9:35 AM EDT Company Participants Richard Dickson - CEO, President & Director Whitney Notaro - Hea...
Shares of apparel retailer Gap gained more than 3.4% after a report by The Wall Street Journal in which the company unveiled plans to enter the beauty and personal care sector.
Gap said on Thursday it would expand into the fast-growing beauty and personal care segment this fall season, including some sold under the Old Navy brand.
Gap on Thursday announced it's expanding into beauty starting with its Old Navy brand, marking a strategic shift for the apparel retailer. The stock was trading higher after a brief halt.
Old Navy will roll out new beauty products this fall, and Gap stores will add fragrances next year.
Retailers are navigating a challenging landscape marked by shifting consumer preferences and unpredictable weather patterns, which impact seasonal sales. In this environment, companies like Gap, Inc. ...
On Opening Bid, Host Brian Sozzi speaks with Gap Inc. CEO Richard Dickson about the retailer's second quarter results and denim campaign. GlobalData retail managing director Neil Saunders also joins t...
Below estimates were sourced from SimplyWallSt and are intended for educational purposes only as a baseline for the analysis.
| Year | FCF Estimate | % | # Analysts |
|---|---|---|---|
| 2026 | 824.23M | Analyst x3 | |
| 2027 | 782.70M | -5.04% | Analyst x3 |
| 2028 | 768.00M | -1.88% | Analyst x1 |
| 2029 | 802.00M | 4.43% | Analyst x1 |
| 2030 | 837.00M | 4.36% | Analyst x1 |
| 2031 | 854.01M | 2.03% | Est @2.0% |
| 2032 | 872.39M | 2.15% | Est @2.2% |
| 2033 | 891.96M | 2.24% | Est @2.2% |
| 2034 | 911.13M | 2.15% | Est @2.1% |
| 2035 | 931.09M | 2.19% | Est @2.2% |
Below are the FCF estimates with the discount factor and the calculated present value with the terminal value that led the results above.
| Year | FCF | Discount Factor | PV of Future FCF |
|---|---|---|---|
| 2024A | 1.11B | 1.00 | 1.11B |
| 2025A | 1.04B | 1.00 | 1.04B |
| 2026E | 824.23M | 1.10 | 751.82M |
| 2027E | 782.70M | 1.20 | 651.21M |
| 2028E | 768.00M | 1.32 | 582.84M |
| 2029E | 802.00M | 1.44 | 555.17M |
| 2030E | 837.00M | 1.58 | 528.49M |
| 2031E | 854.01M | 1.74 | 491.86M |
| 2032E | 872.39M | 1.90 | 458.30M |
| 2033E | 891.96M | 2.09 | 427.41M |
| 2034E | 911.13M | 2.29 | 398.24M |
| 2035E | 931.09M | 2.51 | 371.21M |
| Terminal | 13.38B | 2.51 | 5.34B |
The information given by Studying Stocks and provided in the web and/or mobile applications (Platforms) is only factual information and should not be considered financial advice.
Any information contained in this website has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice.
When creating an account, you acknowledge that you are:
We retain the right to cancel your account for any reason, or refuse your account creation request.
The information on our Platforms is not comprehensive and is intended to provide a summary of the subject matter covered. While we use all reasonable attempts to ensure the accuracy and completeness of the data and information on our Platforms, to the extent permitted by law, we make no warranty regarding the information on these Platforms. You should monitor any changes to the information contained on these Platforms.
Furthermore we make no commitments in regards to the minimum amount of uptime that our platforms will maintain, although we will make ever reasonable attempt to ensure that the platforms are operational. Therefore, any reference of "latest", "current" and related words about the financial data presented here may not be up to date with the financial markets or represent reality of the information.
We are not liable to you or anyone else if interference with or damage to your computer systems occurs in connection with the use of these Platforms or a linked website. You must take your own precautions to ensure that whatever you select for your use from our Platforms is free of viruses or anything else (such as worms or Trojan horses) that may interfere with or damage the operations of your computer systems.
We may, from time to time and without notice, change or add to the Platforms (including the Terms) or the information, products or services described in it. However, we do not undertake to keep the Platforms updated. We are not liable to you or anyone else if errors occur in the information or the Platforms is not up-to-date.
Our Platforms may contain links to websites operated by third parties. Those links are provided for convenience and may not remain current or be maintained. Unless expressly stated otherwise, we do not endorse and are not responsible for the content on those linked websites and have no control over or rights in those linked websites.
These Platforms are for your personal, non-commercial use only. You may not modify, copy, distribute, transmit, display, perform, reproduce, publish, license, commercially exploit, create derivative works from, transfer, or sell any Content, software, products or services contained within these Platforms. You may not use these Platforms, or any of its Content, to further any commercial purpose, including any advertising or advertising revenue generation activity on your own website.
You must not do any act that we would deem to be inappropriate, is unlawful or is prohibited by any laws applicable to these Platforms, including but not limited to:
If we allow you to post any information to our Platforms, we have the right to take down this information at our sole discretion and without notice.
To the maximum extent permitted by law, we make no warranties or representations about these Platforms or the Content, including but not limited to warranties or representations that they will be complete, accurate or up-to-date, that access will be uninterrupted or error-free or free from viruses, or that these Platforms will be secure.
We reserve the right to restrict, suspend or terminate without notice your access to these Platforms, any Content, or any feature of these Platforms at any time without notice and we will not be responsible for any loss, cost, damage or liability that may arise as a result.
To the maximum extent permitted by law, in no event shall we be liable for any direct and indirect loss, damage or expense – irrespective of the manner in which it occurs – which may be suffered due to your use of our Platforms and/or the information or materials contained on it, or as a result of the inaccessibility of these Platforms and/or the fact that certain information or materials contained on it are incorrect, incomplete or not up-to-date.
This website utilises cookies. If you do not have cookies enabled in your web browser some functions of the site may not work as intended.