Gap Inc. (GAP) fundamentals: P/E, valuation, undervalued?
Gap Inc. · Consumer Discretionary · ref. ETF XLY · price $22.83
In short — Gap Inc. trades at 6.9× earnings (P/E), 8.7× forward, with a net margin of 8.1 % and revenue growth of -2 %. Read: Cheap for the growth (P/E 9 for ~142% growth (PEG 0.1)).
Is Gap Inc. stock cheap or undervalued? A good time to buy? Here are its fundamentals — P/E, PEG, margin and income statement — to judge its valuation.
📈 1-year price
$22.83+10.7% over range
Oct 14, 25low $18.35 · high $29.13Oct 13, 26
📏 Click 2 points (left → right) to measure the change · click again to clear.
SellBuy
Hold
33% recommend buying · 12 analysts
Valuation : Cheap for the growth — P/E 9 for ~142% growth (PEG 0.1)
Valuation
6.9
P/E (price/earnings)
8.7
Forward P/E
0.05
PEG
2.0
Price/book (P/B)
$8.0B
Market cap
3.33
EPS
Profitability & growth
8.1 %
Net margin
-2 %
Revenue growth
+142 %
Earnings growth
$5.7B
Total debt
Gap Inc. income statement
| Fiscal year | Revenue | Net income | Margin |
|---|---|---|---|
| 2023 | $15.6B | $-202M | -1.3 % |
| 2024 | $14.9B | $502M | 3.4 % |
| 2025 | $15.1B | $844M | 5.6 % |
| 2026 | $15.4B | $816M | 5.3 % |
⚠️ Indicative financial data (Yahoo Finance), not investment advice. Amounts in $.
Frequently asked questions
What is Gap Inc.'s P/E and is the stock undervalued? What's a good P/E?
Gap Inc.'s P/E is 6.9 (forward 8.7). Below ~15 = fairly cheap, above ~30 = expensive. Our valuation verdict: "Cheap for the growth".
Is Gap Inc. profitable?
Gap Inc. has a net margin of 8.1 % (EPS 3.33). The company is profitable.
Is GAP stock expensive?
Our read: "Cheap for the growth" — P/E 9 for ~142% growth (PEG 0.1). Cross-check with growth and sector.
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