Gap Inc
NYSE:GAP
Decide at what price you'd be comfortable buying and we'll help you stay ready.
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P/S
Price to Sales (P/S) ratio shows how much investors pay for each dollar of a company`s sales. It`s calculated by dividing the company`s market value by its total revenue.
Price to Sales (P/S) ratio shows how much investors pay for each dollar of a company`s sales. It`s calculated by dividing the company`s market value by its total revenue.
Valuation Scenarios
If P/S returns to its 3-Year Average (0.5), the stock would be worth $24.99 (0% upside from current price).
| Scenario | P/S Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 0.5 | $24.99 |
0%
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| 3-Year Average | 0.5 | $24.99 |
+0%
|
| 5-Year Average | 0.5 | $22.79 |
-9%
|
| Industry Average | 0.7 | $30.79 |
+23%
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| Country Average | 2.4 | $112.57 |
+350%
|
Forward P/S
Today’s price vs future revenue
| Today's Market Cap | Revenue | Forward P/S | ||
|---|---|---|---|---|
|
$8.1B
|
/ |
May 2024
$15B
|
= |
|
|
$8.1B
|
/ |
Mar 2025
$15.1B
|
= |
|
|
$8.1B
|
/ |
Mar 2026
$15.4B
|
= |
|
|
$8.1B
|
/ |
Mar 2027
$15.7B
|
= |
|
Forward P/S shows whether today’s P/S still looks high or low once future revenue are taken into account.
Peer Comparison
| Market Cap | P/S | P/E | ||||
|---|---|---|---|---|---|---|
| US |
|
Gap Inc
NYSE:GAP
|
8.1B USD | 0.5 | 12 | |
| ES |
|
Industria de Diseno Textil SA
MAD:ITX
|
166.8B EUR | 4.1 | 26.3 | |
| US |
|
TJX Companies Inc
NYSE:TJX
|
173.8B USD | 2.9 | 31.6 | |
| JP |
|
Fast Retailing Co Ltd
TSE:9983
|
21.5T JPY | 5.9 | 44.9 | |
| ZA |
P
|
Pepkor Holdings Ltd
JSE:PPH
|
83.8B ZAR | 0.9 | 14.9 | |
| US |
|
Ross Stores Inc
NASDAQ:ROST
|
73B USD | 3.2 | 34 | |
| ZA |
M
|
Mr Price Group Ltd
JSE:MRP
|
42B ZAR | 1 | 11.3 | |
| SE |
|
H & M Hennes & Mauritz AB
STO:HM B
|
274.1B SEK | 1.2 | 22.3 | |
| ZA |
F
|
Foschini Group Ltd
JSE:TFG
|
22.8B ZAR | 0.4 | 7.8 | |
| ZA |
T
|
Truworths International Ltd
JSE:TRU
|
21.5B ZAR | 1 | 7.7 | |
| US |
|
Burlington Stores Inc
NYSE:BURL
|
20.8B USD | 1.8 | 34.1 |
Market Distribution
| Min | 0 |
| 30th Percentile | 1.2 |
| Median | 2.4 |
| 70th Percentile | 4.1 |
| Max | 4 613 274.2 |
Other Multiples
Gap Inc
Glance View
Gap Inc., a veritable icon in the landscape of American retail, has navigated the ever-evolving world of fashion with a blend of nostalgia and innovation. Founded in 1969 by Donald and Doris Fisher in San Francisco, the company emerged during a time when reliable, affordable denim was hard to find—a gap, if you will, in the market that they keenly leveraged. Today, Gap Inc. stands as a conglomerate, maintaining a diverse portfolio of brands, including Old Navy, Banana Republic, Athleta, and of course, its namesake Gap stores. Each brand caters to distinct demographics, allowing Gap Inc. to capture a wide customer base ranging from the budget-conscious, fashion-forward youth to the more mature, professional, and health-oriented consumers. The essence of Gap Inc.'s business model lies in its ability to marry robust supply chain logistics with a high-street retail presence, supplemented by a dynamic e-commerce strategy. The company generates revenue through the direct sale of clothing, accessories, and personal care products across its various labels. Beyond traditional brick-and-mortar stores, Gap Inc. has invested heavily in optimizing its online platforms to adapt to shifting consumer behaviors, especially in the wake of the digital shopping era. This dual-channel approach enhances customer engagement and expands reach across geographic and demographic boundaries. By balancing brand revitalization efforts with strategic pricing and inventory management, Gap Inc. strives to maintain its status as a stalwart in the global fashion industry while continuing to pursue avenues for growth and differentiation in a competitive market.