GAP INC (GAP)
Retail-Family Clothing Stores · Consumer Discretionary · $7.8B
Intrinsic Value (Consensus)
$28.66
Current Price
$21.73
Margin of Safety
+31.9%
31.9% Below Intrinsic Value
Value: $29
Price: $22
Valuation Model Estimates
Current Price: $21.73
DCF (Discounted Cash Flow)
$28.90
Graham Number
$22.46
Earnings Power Value
$20.68
Relative Value (P/E)
$42.60
Dividend Discount Model
$2.11
Consensus Value
$28.66
Model Assumptions
Discount Rate
10.3%
Growth Rate
2.0%
Terminal Growth
2.5%
Risk-Free Rate
4.3%
Discount rate derived from CAPM (risk-free rate + beta × market risk premium). Growth rate based on trailing earnings growth, capped at 20%.
Health Score
B
73
Profitability
22/25
Strength
22/25
Valuation
22/25
Growth
7/25
Financial Health Signals
Strong profitability — ROE of 21% (above 20% is excellent)
High free cash flow yield (10.5%) — generating lots of cash relative to price
Key Financials
- EPS (TTM)
- $2.13
- EPS (Forward)
- $2.17
- Book Value
- $10.53
- P/E Ratio
- 20.0
- Forward P/E
- 19.6
- PEG Ratio
- —
- ROE
- 21.5%
- Debt/Equity
- 33%
- Revenue Growth
- 1.9%
- Earnings Growth
- 2.0%
- Dividend Yield
- 0.4%
- Beta
- 1.00
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Data last updated: 2026-06-16
Source: Yahoo Finance