Stock Valuation / GAP
Is The Gap, Inc. (GAP) Overvalued? Fair Value & 5-Year Target
The Gap, Inc. trades at $22.83 (P/E 6.86). Our reference model estimates a fair value of $37.63 at its recent average P/E of 11.30.
| Current price | $22.83 |
|---|---|
| Current EPS | $3.33 |
| Current P/E | 6.86 |
| Average P/E | 11.30 |
| Fair value (at avg P/E) | $37.63 |
| Upside to fair value | +64.8% |
| Illustrative 5-yr target (25× P/E, 15% growth) | $167.45 |
What drives GAP's valuation
Changing either assumption moves the target: a higher P/E multiple or faster EPS growth raises fair value, a lower multiple or slower growth lowers it. The interactive dashboard lets you edit both and re-run the model instantly.
About The Gap, Inc.
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.
Frequently asked questions
What is GAP's fair value?
At its recent average P/E of 11.30, The Gap, Inc. (GAP) has a reference fair value of about $37.63, which is +64.8% versus the current price of $22.83.
Is The Gap, Inc. (GAP) overvalued or undervalued?
Based on the average-P/E reference model, The Gap, Inc. looks undervalued relative to fair value by roughly +64.8%. This is a model output, not investment advice — change the P/E and growth assumptions in the dashboard for your own view.
What is a 5-year price target for GAP?
Under an illustrative model of 25× P/E and 15% annual EPS growth, the implied 5-year target is $167.45. Adjust both inputs on the interactive page to match your assumptions.
Open the interactive GAP valuation dashboard →
Figures are for informational purposes only and are not investment advice. Data as of 2026-10-14.