Gap Inc

Gap Inc (GAP) Stock Analysis

$23.470

-0.070 (-0.30%)At close

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High
23.700
Open
23.530
VWAP
23.48
Volume
4.65M
Mkt Cap
—
Low
23.270
Amount
109.20M
EV/EBITDA, TTM
7.50

The Gap, Inc. is a specialty apparel company in America. The Company offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, and Athleta brands. It is an omni-channel retailer, with sales to customers both in stores and online, through Company-operated and franchise stores, websites, and third-party arrangements. Its omni-channel services, include buying online pick-up in-store, order-in-store, find-in-store, and ship-from-store, as well as enhanced mobile-enabled experiences. Gap includes adult apparel and accessories brands that offer GapKids, babyGap, Gap Maternity, GapBody, and GapFit collections, as well as limited-edition collections with GapStudio and with partner brands. Athleta is a premium performance lifestyle brand for women and girls. Athleta products are available at Company-operated stores across the United States and Canada, franchise retail locations globally, and online.

AI analysis of Gap Inc (GAP)

Buy

Gap Inc is a good buy right now, trading at $23.12, which is below the average analyst price target of $27. The stock has a low forward P/E of 8.89 and a strong gross margin of 52.83% expected in Q2 2027, indicating solid profitability. The main risk is the recent negative sentiment in the retail sector, with a year-to-date change of -8.22%.

Valuation Metrics

The current forward P/E ratio for Gap Inc (GAP) is 8.89, compared to its 5-year average forward P/E of 12.08.

Forward P/E

Fair
5Y Average P/E
12.08
Current P/E
8.89
Overvalued
52.48
Undervalued
-28.32

Forward EV/EBITDA

Fair
5Y Average EV/EBITDA
9.07
Current EV/EBITDA
7.50
Overvalued
11.98
Undervalued
6.16

Forward P/S

Fair
5Y Average P/S
0.44
Current P/S
0.52
Overvalued
0.58
Undervalued
0.30

Alphio AI Price Scenarios for GAP

Scenario prices are the last monthly forecast band of the current year. Probabilities are fixed model weights (25 / 50 / 25), not guarantees.

B

Bull

Bull · 25%GAP

$28.45

Scenario price

B

Base

Base · 50%GAP

$24.64

Scenario price

B

Bear

Bear · 25%GAP

$21.51

Scenario price

Whales holding GAP

G

Gilder Gagnon Howe & Co. LLC

+ HoldingGAP

+7.50%

3M Return

GAP FAQ — answered by Alphio AI

The Gap, Inc. is a specialty apparel company in America. The Company offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, and Athleta brands. It is an omni-channel retailer, with sales to customers both in stores and online, through Company-operated and franchise stores, websites, and third-party arrangements. Its omni-channel services, include buying online pick-up in-store, order-in-store, find-in-store, and ship-from-store, as well as enhanced mobile-enabled experiences. Gap includes adult apparel and accessories brands that offer GapKids, babyGap, Gap Maternity, GapBody, and GapFit collections, as well as limited-edition collections with GapStudio and with partner brands. Athleta is a premium performance lifestyle brand for women and girls. Athleta products are available at Company-operated stores across the United States and Canada, franchise retail locations globally, and online. It operates in the Consumer Cyclicals sector.

Gap Inc is a good buy right now, trading at $23.12, which is below the average analyst price target of $27. The stock has a low forward P/E of 8.89 and a strong gross margin of 52.83% expected in Q2 2027, indicating solid profitability. The main risk is the recent negative sentiment in the retail sector, with a year-to-date change of -8.22%.

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This page is for research only and is not investment advice. Models can be wrong. Past performance does not guarantee future results.

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