Historical Valuation
Gap Inc (GAP) is now in the Fair zone, suggesting that its current forward PS ratio of 0.60 is considered Fairly compared with the five-year average of 13.29. The fair price of Gap Inc (GAP) is between 23.06 to 35.04 according to relative valuation methord.
Relative Value
Fair Zone
23.06-35.04
Current Price：28.42
Fair
P/E
EV/EBITDA
EV/EBIT
P/S
P/OCF
P/FCF
1Y
3Y
5Y
Trailing
Forward
Gap Inc (GAP) has a current Price-to-Book (P/B) ratio of 2.57. Compared to its 3-year average P/B ratio of 2.49 , the current P/B ratio is approximately 3.22% higher. Relative to its 5-year average P/B ratio of 2.56, the current P/B ratio is about 0.26% higher. Gap Inc (GAP) has a Forward Free Cash Flow (FCF) yield of approximately 8.31%. Compared to its 3-year average FCF yield of 11.74%, the current FCF yield is approximately -29.17% lower. Relative to its 5-year average FCF yield of 4.85% , the current FCF yield is about 71.37% lower.
P/B
Median3y
2.49
Median5y
2.56
FCF Yield
Median3y
11.74
Median5y
4.85
Competitors Valuation Multiple
AI Analysis for GAP
The average P/S ratio for GAP competitors is 1.09, providing a benchmark for relative valuation. Gap Inc Corp (GAP.N) exhibits a P/S ratio of 0.60, which is -44.88% above the industry average. Given its robust revenue growth of 2.95%, this premium appears unsustainable.
Performance Decomposition
AI Analysis for GAP
1Y
3Y
5Y
Market capitalization of GAP increased by 0.00% over the past 1 year. The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.
The secondary factor is the Unknown, contributed 0.00%to the performance.
Overall, the performance of GAP in the past 1 year is driven by Unknown.
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Frequently Asked Questions
Is GAP currently overvalued or undervalued?
Gap Inc (GAP) is now in the Fair zone, suggesting that its current forward PS ratio of 0.60 is considered Fairly compared with the five-year average of 13.29. The fair price of Gap Inc (GAP) is between 23.06 to 35.04 according to relative valuation methord.
What is Gap Inc (GAP) fair value?
GAP's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Gap Inc (GAP) is between 23.06 to 35.04 according to relative valuation methord.
How does GAP's valuation metrics compare to the industry average?
The average P/S ratio for GAP's competitors is 1.09, providing a benchmark for relative valuation. Gap Inc Corp (GAP) exhibits a P/S ratio of 0.60, which is -44.88% above the industry average. Given its robust revenue growth of 2.95%, this premium appears unsustainable.
What is the current P/B ratio for Gap Inc (GAP) as of Jan 09 2026?
As of Jan 09 2026, Gap Inc (GAP) has a P/B ratio of 2.57. This indicates that the market values GAP at 2.57 times its book value.
What is the current FCF Yield for Gap Inc (GAP) as of Jan 09 2026?
As of Jan 09 2026, Gap Inc (GAP) has a FCF Yield of 8.31%. This means that for every dollar of Gap Inc’s market capitalization, the company generates 8.31 cents in free cash flow.
What is the current Forward P/E ratio for Gap Inc (GAP) as of Jan 09 2026?
As of Jan 09 2026, Gap Inc (GAP) has a Forward P/E ratio of 11.43. This means the market is willing to pay $11.43 for every dollar of Gap Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Gap Inc (GAP) as of Jan 09 2026?
As of Jan 09 2026, Gap Inc (GAP) has a Forward P/S ratio of 0.60. This means the market is valuing GAP at $0.60 for every dollar of expected revenue over the next 12 months.