(GAP) The Gap - Ratings and Ratios

Exchange: NYSE • Country: United States • Currency: USD • Type: Common Stock • ISIN: US3647601083

Apparel, Accessories, Personal-Care, Athleticwear

Apparel Retail
Market Cap in USD: 10,533m

IPO / Inception: 1987-07-23
12m vs SPY: 1.59%

EPS (Earnings per Share)

EPS CAGR: 18.29%
EPS Trend: 66.6%

Last SUE: 0.24
Qual. Beats: 0

Revenue

Rev. CAGR: -3.61%
Rev. Trend: -16.5%

Qual. Beats: 0

Dividends

Dividend Yield	3.59%
Yield on Cost 5y	3.63%
Yield CAGR 5y	7.50%
Payout Consistency	95.2%
Payout Ratio	29.5%

Risk via 5d forecast
Volatility	50.7%
Value at Risk 5%th	67.7%
Relative Tail Risk	-18.91%

Reward TTM
Sharpe Ratio	0.58
Alpha	-11.97
CAGR/Max DD	0.66

Character TTM
Hurst Exponent	0.583
Beta	1.486
Beta Downside	0.969

Drawdowns 3y
Max DD	50.65%
Mean DD	20.72%
Median DD	21.39%

Description: GAP The Gap January 07, 2026

The Gap, Inc. (NYSE:GAP) is a U.S.–based apparel retailer that sells clothing, accessories, and personal-care items for men, women, and children under the Old Navy, Gap, Banana Republic, and Athleta brands. It distributes products through company-operated and franchised stores, its e-commerce sites, third-party retailers, and licensing agreements across North America, Asia, Europe, Latin America, the Middle East, and Africa.

Key operating metrics show FY 2023 revenue of roughly $16.2 billion, with comparable-sales growth down about 5 % year-over-year and an operating margin near 4.5 %. Online sales now represent ~30 % of total revenue, and inventory turnover sits at 4.2 ×, reflecting ongoing pressure from inflation-sensitive consumer spending, higher labor costs, and a competitive shift toward omni-channel and fast-fashion models in the broader apparel retail sector.

For a deeper, data-driven valuation framework, you might explore ValueRay’s analyst tools.

Piotroski VR‑10 (Strict, 0-10) 4.5

Net Income (851.0m TTM) > 0 and > 6% of Revenue (6% = 916.7m TTM)

FCFTA 0.06 (>2.0%) and ΔFCFTA -3.05pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 15.45% (prev 11.85%; Δ 3.60pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.10 (>3.0%) and CFO 1.22b > Net Income 851.0m (YES >=105%, WARN >=100%)

Net Debt (3.25b) to EBITDA (1.72b) ratio: 1.89 <= 3.0 (WARN <= 3.5)

Current Ratio 1.72 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (380.0m) change vs 12m ago -0.78% (target <= -2.0% for YES)

Gross Margin 41.01% (prev 41.27%; Δ -0.26pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 126.2% (prev 128.5%; Δ -2.38pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 17.96 (EBITDA TTM 1.72b / Interest Expense TTM 68.0m) >= 6 (WARN >= 3)

Altman Z'' 3.28

(A) 0.19 = (Total Current Assets 5.64b - Total Current Liabilities 3.28b) / Total Assets 12.37b

(B) 0.28 = Retained Earnings (Balance) 3.50b / Total Assets 12.37b

(D) 0.41 = Book Value of Equity 3.57b / Total Liabilities 8.72b

Total Rating: 3.28 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 71.85

1. Piotroski 4.50pt

2. FCF Yield 5.65%

3. FCF Margin 5.10%

4. Debt/Equity 1.51

5. Debt/Ebitda 1.89

6. ROIC - WACC (= 9.94)%

7. RoE 24.91%

8. Rev. Trend -16.48%

9. EPS Trend 66.61%

What is the price of GAP shares?

As of January 14, 2026, the stock is trading at USD 27.43 with a total of 3,764,632 shares traded.
Over the past week, the price has changed by +2.03%, over one month by +2.90%, over three months by +33.91% and over the past year by +22.66%.

Is GAP a buy, sell or hold?

The Gap has received a consensus analysts rating of 3.63. Therefor, it is recommend to hold GAP.

Strong Buy: 4
Buy: 4
Hold: 11
Sell: 0
Strong Sell: 0

What are the forecasts/targets for the GAP price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	30.1	9.6%
Analysts Target Price	30.1	9.6%
ValueRay Target Price	30.5	11.2%

GAP Fundamental Data Overview January 13, 2026

P/E Trailing = 12.7568
P/E Forward = 12.87
P/S = 0.6894
P/B = 2.8881
P/EG = 1.7538
Beta = 2.292
Revenue TTM = 15.28b USD
EBIT TTM = 1.22b USD
EBITDA TTM = 1.72b USD
Long Term Debt = 1.49b USD (from longTermDebt, last quarter)
Short Term Debt = 629.0m USD (from shortTermDebt, last quarter)
Debt = 5.52b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 3.25b USD (from netDebt column, last quarter)
Enterprise Value = 13.79b USD (10.53b + Debt 5.52b - CCE 2.26b)
Interest Coverage Ratio = 17.96 (Ebit TTM 1.22b / Interest Expense TTM 68.0m)
EV/FCF = 17.70x (Enterprise Value 13.79b / FCF TTM 779.0m)
FCF Yield = 5.65% (FCF TTM 779.0m / Enterprise Value 13.79b)
FCF Margin = 5.10% (FCF TTM 779.0m / Revenue TTM 15.28b)
Net Margin = 5.57% (Net Income TTM 851.0m / Revenue TTM 15.28b)
Gross Margin = 41.01% ((Revenue TTM 15.28b - Cost of Revenue TTM 9.01b) / Revenue TTM)
Gross Margin QoQ = 42.36% (prev 41.23%)
Tobins Q-Ratio = 1.11 (Enterprise Value 13.79b / Total Assets 12.37b)
Interest Expense / Debt = 0.05% (Interest Expense 3.00m / Debt 5.52b)
Taxrate = 29.97% (101.0m / 337.0m)
NOPAT = 855.1m (EBIT 1.22b * (1 - 29.97%))
Current Ratio = 1.72 (Total Current Assets 5.64b / Total Current Liabilities 3.28b)
Debt / Equity = 1.51 (Debt 5.52b / totalStockholderEquity, last quarter 3.65b)
Debt / EBITDA = 1.89 (Net Debt 3.25b / EBITDA 1.72b)
Debt / FCF = 4.18 (Net Debt 3.25b / FCF TTM 779.0m)
Total Stockholder Equity = 3.42b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.03% (Net Income 851.0m / Total Assets 12.37b)
RoE = 24.91% (Net Income TTM 851.0m / Total Stockholder Equity 3.42b)
RoCE = 24.88% (EBIT 1.22b / Capital Employed (Equity 3.42b + L.T.Debt 1.49b))
RoIC = 17.43% (NOPAT 855.1m / Invested Capital 4.91b)
WACC = 7.49% (E(10.53b)/V(16.05b) * Re(11.39%) + D(5.52b)/V(16.05b) * Rd(0.05%) * (1-Tc(0.30)))
Discount Rate = 11.39% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 0.66%
[DCF Debug] Terminal Value 74.72% ; FCFF base≈910.6m ; Y1≈661.3m ; Y5≈369.4m
Fair Price DCF = 12.02 (EV 7.73b - Net Debt 3.25b = Equity 4.47b / Shares 371.9m; r=7.49% [WACC]; 5y FCF grow -32.26% → 2.90% )
[DCF Warning] FCF declining rapidly (-32.26%), DCF may be unreliable
EPS Correlation: 66.61 | EPS CAGR: 18.29% | SUE: 0.24 | # QB: 0
Revenue Correlation: -16.48 | Revenue CAGR: -3.61% | SUE: N/A | # QB: 0
EPS next Quarter (2026-04-30): EPS=0.48 | Chg30d=+0.007 | Revisions Net=-1 | Analysts=7
EPS next Year (2027-01-31): EPS=2.34 | Chg30d=+0.033 | Revisions Net=+8 | Growth EPS=+8.9% | Growth Revenue=+2.4%

Additional Sources for GAP Stock

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