Gap, Inc. (The)

Valuation Analysis

About the Company

Gap, Inc. (The) en bref

Gap, Inc. (The) (GAP) is currently trading at 18,45 € with a market capitalization of 6,6 Md €. The trailing P/E ratio stands at 8.39x, with a forward P/E of 8.11x. The 52-week range spans from 16,30 € to 25,62 €; the current price is 28% below the yearly high. Year-over-year revenue growth stands at +1.0%. The net profit margin stands at 6.25%.

💰 Dividende

Gap, Inc. (The) pays an annual dividend of 0,61 € per share, representing a yield of 3.31%. The payout ratio stands at 26.59%.

📊 Avis des analystes

17 analystes évaluent Gap, Inc. (The) (GAP) au consensus : Acheter. L'objectif de cours moyen est de 23,79 €, soit un potentiel de +28.94% par rapport au cours actuel. La fourchette des objectifs de cours des analystes va de 17,45 € à 34,91 €.

Gap, Inc. (The) : la thèse d'investissement en détail

Gap, Inc. (The) (GAP) operates in the Consumer Cyclical — specifically Apparel Retail — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

Le scénario haussier

Earnings growth of 76.5% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base. Return on equity of 27.58% places management among the most capital-efficient operators in the public market — every euro of shareholder capital is working hard. Wall Street consensus sits at Buy with an average price target implying roughly 28.94% upside from current levels — analyst sentiment is firmly constructive.

Le scénario baissier

Revenue growth has slowed to just 1%, which is below nominal GDP — the business is no longer outgrowing the broader economy. With a beta near 2.01, the share price moves sharply more than the broader market — drawdowns in market corrections can be unusually severe and require strong nerves. Short interest sits at 12.86% of float — a meaningful contingent of professionals is positioned for the share to fall, which deserves attention even if their thesis may turn out to be wrong.

Valorisation en contexte

The PEG ratio at 1.27 sits in the reasonable zone — the price tag is roughly aligned with the company's growth profile, neither punishing nor euphoric. The EV/EBITDA multiple of 6.09x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

À surveiller

• The price sits in the lower quartile of the 52-week range — value hunters often start scaling in around this zone if fundamentals hold.
• The dividend yield near 3.31% combined with a payout ratio of 26.59% leaves room for further hikes — a track record of consecutive raises is a strong income signal.
• The analyst consensus price target implies 28.94% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Thèse d'investissement : forces et faiblesses

Aperçu technique

Price is below both the 50- and 200-day moving averages, with 50d below 200d — a bearish picture (death-cross alignment).

Profil de risque

The data points to above-average price swings, elevated short interest (12.86%), higher leverage relative to equity.

Trading Data

💵 Dividend Info

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