Is The Gap, Inc. (GAP) Overvalued?
We dive into why The Gap, Inc. (GAP) could be considered overvalued on 2026-07-27, based on AAII’s Value Score and Grade.Rosalio Madrigal
A+ Stock Grade Summary:
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COMPANY SUMMARY
The Gap, Inc. operates as an apparel retail company in the United States, Canada, Japan, Taiwan, and internationally. The company offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, and Athleta brands. The company offers its products through company-operated stores, franchise stores, websites, and third-party arrangements, as well as licensing partnerships. It has franchise agreements to operate Old Navy, Gap, Banana Republic, and Athleta in Asia, Europe, Latin America, the Middle East, and Africa. The Gap, Inc. was incorporated in 1969 and is headquartered in San Francisco, California.
Commentary & Analysis
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Financial Summary
| Share Statistics | GAP | Industry Median |
Percentile (All Stocks) |
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| Market Cap (Mil) | $7,232.0 | $951.4 | 73% |
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| Shares Out (Mil) | 378.0 | 41.1 | 85% |
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| Institutional Ownership | 57.3% | 76.3% | 38% |
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| Float (Mil) | 184.3 | 33.5 | 72% |
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| Beta | 2.08 | 1.08 | 93% |
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| Avg Daily Volume (000s) | 6,078 | 274 | 94% |
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| Price Change (52-week) |
2.1% | 69.5% | 47% |
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| Growth | GAP | Industry Median |
Percentile (All Stocks) |
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| Sales (5yr) | 2.2% | 6.4% | 24% |
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| Net Income (5yr) | 26.4% | 7.8% | 81% |
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| EPS (5yr) | 26.2% | 12.5% | 76 |
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| Dividends (5yr) | 22.2% | 0.0% | 73% |
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| Cash Flow (5yr) | (15.1%) | (16.2%) | 51% |
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| Estimates | Qtrly | Current Fiscal Year |
Next Fiscal Year |
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| # of Estimates | 15 | 19 | 19 | |
| Current EPS | $0.493 | $2.368 | $2.607 | |
| Month Ago EPS | $0.497 | $2.356 | $2.607 | |
| # Rev Up | 0 | 1 | 1 | |
| # Rev Down | 2 | 0 | 0 | |
| Three Months Ago EPS | $0.518 | $2.326 | $2.607 | |
| Year/Year Chg | (45.2%) | 11.2% | 34.6% | |
| Financials | GAP | Industry Median |
Percentile (All Stocks) |
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| Sales (TTM) (Mil) | $15,400 | $1,858 | 89% |
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| Net Income (TTM) (Mil) | $962 | $33 | 86% |
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| EPS (TTM) | $2.593 | $0.500 | 76% |
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| Operating Cash Flow (TTM) (Mil) | $1,646 | $104 | 86% |
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| Net Cash Flow (TTM) (Mil) | $185 | ($1) | 84% |
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| Long-Term Debt (Q1) (Mil) | $5,011 | $407 | 85% |
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| Enterprise Value (Q1) (Mil) | $10,695 | $1,535 | 75% |
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| Valuation | GAP | Industry Median |
Percentile (All Stocks) |
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| P/B | 1.99 | 1.72 | 50% |
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| P/E | 8.0 | 19.2 | 10% |
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| Dividend Yield | 3.5% | 0.0% | 88% |
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| PEG (5yr hist) | 0.3 | 1.0 | 13% |
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| Ratios | GAP | Industry Median |
Percentile (All Stocks) |
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| Gross Margin | 40.5% | 39.0% | 50% |
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| Net Margin | 6.2% | 1.9% | 52% |
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| ROA | 8.1% | 2.5% | 83% |
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| ROE | 27.6% | 10.3% | 86% |
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| Liabilities to Assets | 69.9% | 66.9% | 65% |
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| F-Score | 7 | 5 | 84% |
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The Gap, Inc. did not pass any screens on 7/31/2026.
