The Gap, Inc. (GAP) is a publicly traded company in the Consumer Cyclical — Apparel - Retail industry listed on NYSE. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
The Gap, Inc. operates as a prominent apparel retail enterprise, offering a diverse array of clothing, accessories, and personal care products for men, women, and children. These goods are marketed under its well-known brands: Old Navy, Gap, Banana Republic, and Athleta. Its extensive product line features staples such as denim, t-shirts, fleece wear, and khakis, alongside accessories like eyewear, jewelry, footwear, handbags, and fragrances.
Is The Gap, Inc. stock overvalued or undervalued in 2026?
On the earnings the consensus expects for 2027 ($2.39 per share), The Gap, Inc. (GAP) trades at 9.2× earnings (P/E), below the median of the 209 consumer cyclicals companies over $2bn in Kaplio's universe. The P/E on the last twelve months (6.6×) is based on earnings per share of $3.35, far from what is expected; that is why this range uses expected earnings. At the decade median (12.7×) $30 (+38 %); at its sector median (17.9×) $43 (+94 %).
Kaplio overview: The Gap, Inc.
Market cap $8B · 52 weeks $18 – $29 (23 % below the high) · P/E 6.6× · 2027 expected P/E 9.2× · Dividend 3.2 % · Next earnings November 19, 2026 · expected EPS $0.78 · Closing price, Oct 28 · accounts published Aug 27.
- Valuation: P/E 6.6× (cheap).
- Business: 5-year ROIC 5.8 % (weak).
- Balance sheet: Net debt/EBITDA 1.8× (solid).
- Earnings: 7 of 8 (uneven).
What would it be worth at its usual multiples?
On those earnings: at the decade median (12.7×) $30 (+38 %); at its sector median (17.9×) $43 (+94 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.
Note: earnings per share over the last twelve months ($3.35) are far from the consensus for 2027 ($2.39); that is why this range uses expected earnings.
What matters in consumer cyclicals: 4 of 7 pass
- 5y avg operating margin 4.6 %, fails.
- 5y avg ROIC 5.8 %, fails.
- P/E read in reverse (cyclicals) 6.6×, info.
- EV/Sales vs history 0.9×, fails.
- Inventory turnover 4.1×, passes, near the threshold.
- Net debt / EBITDA 1.8×, passes.
- Current Ratio 1.82, passes.
- Altman Z-Score 2.9, passes.
Against its peers (reference peers) — The Gap, Inc.: P/E 6.6×; EV/EBITDA 6.3×; ROIC 12.0 %; $7.7B. Urban Outfitters, Inc. (P/E 14.0×; EV/EBITDA 9.8×; ROIC 13.8 %; $7.7B), Abercrombie & Fitch Co. (P/E 13.8×; EV/EBITDA 8.3×; ROIC 19.0 %; $6.8B), Lululemon Athletica Inc. (P/E 8.7×; EV/EBITDA 5.0×; ROIC 19.7 %; $12.2B).
Expensive or cheap against its last ten years?
P/E at each close: today 6.6× · median 12.7× · minimum 2.2× · maximum 22.4× · cheap below 10.3× · expensive above 16.6×. Earnings over the last 12 months are distorted: today's P/E compared with its history is not representative.
Dividend
tight (only raised recently) · Yield 3.2 % ($0.66 per share in 2025) · Years raising it 1 · 5-year growth -6 % a year · Free cash flow coverage 4.3× · With $1,000 invested today you'd collect $32.30 a year ($2.69 a month).
Profitability
| Return on Equity | 33.13% |
| Return on Invested Capital | 12.03% |
| Return on Assets | 9.70% |
| Gross Margin | 43.26% |
| Operating Margin | 10.99% |
| Net Margin | 8.14% |
Financial Health
| Debt / Equity | 1.45 |
| Current Ratio | 1.82 |
| Piotroski F-Score | 6 |
| Altman Z-Score | 2.85 |
Price Performance
| 1 month | -6.54% |
| 3 months | +9.51% |
| Year-to-date | -14.06% |
| 1 year | -7.13% |
| 3 years | +73.91% |
| 5 years | -3.04% |
| 10 years | -20.26% |
Dividend History
Paid in the last 12 months: $0.6900 per share in 4 payments.
| Date | Amount |
|---|---|
| 2026-10-07 | $0.1750 |
| 2026-07-08 | $0.1750 |
| 2026-04-08 | $0.1750 |
| 2026-01-07 | $0.1650 |
| 2025-10-08 | $0.1650 |
| 2025-07-09 | $0.1650 |
| 2025-04-09 | $0.1650 |
| 2025-01-08 | $0.1500 |
| 2024-10-09 | $0.1500 |
| 2024-07-10 | $0.1500 |
Amounts adjusted for stock splits.
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Explore sector: Consumer Cyclical · Apparel - Retail
More sections of GAP: Financials · Valuation · Statistics · Estimates · Technical · Ownership · News · Events
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