Gap, Inc. (The) (GAP) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Gap, Inc. (The)

NYSE•Consumer Cyclical•Apparel Retail

$20.92-0.59(-0.03%)Pre-market

Market Cap

$7.41B

P/E

5.9x

P/S

0.5x

P/B

1.9x

The Gap, Inc. operates as an apparel retail company in the United States, Canada, Japan, Taiwan, and internationally. The company offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, and Athleta brands. The company offers its products through company-operated stores, franchise stores, websites, and third-party arrangements, as well as licensing partnerships. It has franchise agreements to operate Old Navy, Gap, Banana Republic, and Athleta in Asia, Europe, Latin America, the Middle East, and Africa. The Gap, Inc. was incorporated in 1969 and is headquartered in San Francisco, California.

How this company scores

ExcellentMetricSide Score: 87/100

Strongest: Balance Sheet & Red Flags (25/25); weakest: Growth (19/25).

Profitability23/25

Growth19/25

Balance Sheet & Red Flags25/25

Cash & Earnings Quality20/25

Strengths

Rising free cash flowHigh ROERising earningsLow leverage

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 5.9x5y range 5.9x – 170.0x

Currently below its 16-quarter median.

P/S · 0.5x5y range 0.5x – 0.7x

Currently near its 20-quarter median.

P/B · 1.9x5y range 1.9x – 3.4x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Earnings Quality

Red Flag

FCF consistently trails net income (avg 1.0x) — earnings may be inflated by non-cash items or aggressive accounting.

Price & Volume

Market Cap $7.41B

Metrics at a Glance

as of August 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $15.33B
Q. Revenue: $3.65B
TTM EBITDA: $2.20B
TTM Op. Income: $1.68B
Q. Op. Income: $676.00M
TTM Net Income: $1.25B
Q. Net Income: $501.00M
EPS: $1.41
Shares Out.: $355.00M

$15.33B in TTM revenue grew 1.1% YoY, reaching $3.65B last quarter. TTM EBITDA of $2.20B and TTM operating income of $1.68B show growth is flowing through to the bottom line. TTM net income of $1.25B means revenue is converting into profit. Over the past year, TTM revenue is up 1% — a weakening trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 52.8%
EBITDA Margin: 22.1%
Op. Margin: 18.5%
Net Margin: 13.7%

Op. margin of 18.5% is up 10.7% YoY — cost efficiency is improving. Net margin at 13.7% and gross margin of 52.8% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has risen for 2 consecutive quarters — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 5.9x
P/S Ratio: 0.5x
P/B Ratio: 1.9x

At 5.9x P/E, the stock trades below typical market levels. P/S of 0.5x and P/B of 1.9x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has fallen for 2 consecutive quarters — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $12.86B
Cash: $2.10B
Long-Term Debt: $1.49B
Book Value: $3.95B
D/E Ratio: 0.4
Debt/EBITDA: 1.9

With $12.86B in assets and $1.49B in long-term debt, D/E is 0.4and book value is $3.95B — a conservative capital structure with a cushion to weather downturns. Over the past year, debt/equity is down 13% — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $337.00M
TTM Free Cash Flow: $957.00M
FCF Margin: 6.2%
FCF / Net Income: 0.8

TTM FCF of $957.00M on $337.00M in operating cash flow. The FCF / Net Income ratio of 0.8x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is up 24% — a weakening trend.