Gap Inc. (GAP) fundamentals: P/E, valuation, undervalued?
Gap Inc. · Consumer Discretionary · ref. ETF XLY · price $20.79
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
📏 Click 2 points (left → right) to measure the change · click again to clear.
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 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 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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