Gap Inc. (GAP) fundamentals: P/E, valuation, undervalued?

Gap Inc. · Consumer Discretionary · ref. ETF XLY · price $20.79
Logo Gap Inc.See the full Gap Inc. (GAP) profile
In short — Gap Inc. trades at 8.4× earnings (P/E), 8.1× forward, with a net margin of 6.2 % and revenue growth of +1 %. Read: Cheap for the growth (P/E 8 for ~76% 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
$20.79-4.1% over range
Aug 28, 25low $18.35 · high $29.13Aug 27, 26
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SellBuy
Hold
42% recommend buying · 12 analysts
Valuation : Cheap for the growth — P/E 8 for ~76% growth (PEG 0.1)

Valuation

8.4
P/E (price/earnings)
8.1
Forward P/E
0.11
PEG
2.1
Price/book (P/B)
Market cap
2.48
EPS

Profitability & growth

6.2 %
Net margin
+1 %
Revenue growth
+77 %
Earnings growth
$5.6B
Total debt

Gap Inc. income statement

Fiscal yearRevenueNet incomeMargin
2023$15.6B$-202M-1.3 %
2024$14.9B$502M3.4 %
2025$15.1B$844M5.6 %
2026$15.4B$816M5.3 %
⚠️ 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 8.4 (forward 8.1). 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 6.2 % (EPS 2.48). The company is profitable.

Is GAP stock expensive?

Our read: "Cheap for the growth" — P/E 8 for ~76% growth (PEG 0.1). Cross-check with growth and sector.

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