Gap Valuation
| GPS Stock | USD 20.11 0.80 3.83% |
At this time, the firm appears to be overvalued. Gap Inc retains a regular Real Value of $16.3 per share. The prevalent price of the firm is $20.11. Our model calculates the value of Gap Inc from evaluating the firm fundamentals such as Return On Asset of 0.0341, current valuation of 11.38 B, and Return On Equity of 0.21 as well as inspecting its technical indicators and probability of bankruptcy. In general, most investors encourage acquiring undervalued assets and selling overvalued assets since, at some point, asset prices and their ongoing real values will come together. Key fundamental drivers impacting Gap's valuation include:
Price Book 3.2385 | Enterprise Value 11.4 B | Enterprise Value Ebitda 10.25 | Price Sales 0.5644 | Forward PE 18.7617 |
Overvalued
Today
Please note that Gap's price fluctuation is not too volatile at this time. Calculation of the real value of Gap Inc is based on 3 months time horizon. Increasing Gap's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Gap Inc is useful when determining the fair value of the Gap stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Gap. Since Gap is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Gap Stock. However, Gap's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 20.11 | Real 16.3 | Target 10.83 | Hype 20.07 | Naive 22.15 |
The real value of Gap Stock, also known as its intrinsic value, is the underlying worth of Gap Inc Company, which is reflected in its stock price. It is based on Gap's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Gap's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Gap's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Gap Inc helps investors to forecast how Gap stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Gap more accurately as focusing exclusively on Gap's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Gap's intrinsic value based on its ongoing forecasts of Gap's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Gap's closest peers. When choosing an evaluation method for Gap Inc, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Gap Investments |
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Gap Valuation Trend
Knowing Gap's actual value is paramount for traders to make sound investment determinations. Gap's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Gap's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Gap's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Gap Market Cap
Gap Inc is one of the top stocks in market capitalization category among related companies. Market capitalization of Consumer Discretionary industry is currently estimated at about 10.57 Billion. Gap totals roughly 7.51 Billion in market capitalization claiming about 71% of stocks in Consumer Discretionary industry.Gap Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Gap's current stock value. Our valuation model uses many indicators to compare Gap value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Gap competition to find correlations between indicators driving Gap's intrinsic value. More Info.Gap Inc is one of the top stocks in price to earning category among related companies. It is one of the top stocks in price to book category among related companies fabricating about 0.03 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Gap Inc is roughly 29.93 . Price To Book Ratio is likely to gain to 6.01 in 2024. Comparative valuation analysis is a catch-all model that can be used if you cannot value Gap by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Gap's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Gap's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Gap's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Gap and how it compares across the competition.
About Gap Valuation
The stock valuation mechanism determines the current worth of Gap Inc on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Gap Inc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Gap Inc based exclusively on its fundamental and basic technical indicators. By analyzing Gap's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Gap's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Gap. We calculate exposure to Gap's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Gap's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 5.8 B | 4.6 B | |
| Pretax Profit Margin | 0.04 | 0.12 | |
| Operating Profit Margin | 0.04 | 0.13 | |
| Net Profit Margin | 0.03 | 0.08 | |
| Gross Profit Margin | 0.39 | 0.38 |
Gap Quarterly Retained Earnings |
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8 Steps to conduct Gap's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Gap's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Gap's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Gap's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Gap's revenue streams: Identify Gap's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Gap's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Gap's growth potential: Evaluate Gap's management, business model, and growth potential.
- Determine Gap's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Gap's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Gap represents a small ownership stake in the entity. As a stockholder of Gap, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Gap Dividends Analysis For Valuation
Dividends Paid is likely to drop to about 193.4 M in 2024. Dividend Yield is likely to drop to 0.02 in 2024. At this time, Gap's Earnings Yield is comparatively stable compared to the past year. Price Earnings To Growth Ratio is likely to gain to 3.29 in 2024, whereas Retained Earnings are likely to drop slightly above 2.3 B in 2024.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 222 M | 193.4 M | |
| Dividend Yield | 0.03 | 0.02 | |
| Dividend Payout Ratio | 0.44 | 0.30 | |
| Dividend Paid And Capex Coverage Ratio | (7.74) | (6.43) |
There are various types of dividends Gap can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Gap shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Gap Inc directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Gap pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Gap by the value of the dividends paid out.
Gap Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Gap does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 372 M | |
| Quarterly Earnings Growth Y O Y | -0.247 | |
| Forward Price Earnings | 18.7617 |
Gap Current Valuation Indicators
Valuation refers to the process of determining the present value of Gap Inc and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Gap we look at many different elements of the entity such as Gap's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Gap's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Gap's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Gap, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Gap's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Gap's worth.When determining whether Gap Inc is a strong investment it is important to analyze Gap's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Gap's future performance. For an informed investment choice regarding Gap Stock, refer to the following important reports: Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Gap Inc. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in american community survey. You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Complementary Tools for Gap Stock analysis
When running Gap's price analysis, check to measure Gap's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Gap is operating at the current time. Most of Gap's value examination focuses on studying past and present price action to predict the probability of Gap's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Gap's price. Additionally, you may evaluate how the addition of Gap to your portfolios can decrease your overall portfolio volatility.
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Is Gap's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Gap. If investors know Gap will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Gap listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.25) | Dividend Share 0.6 | Earnings Share 1.34 | Revenue Per Share 40.241 | Quarterly Revenue Growth 0.013 |
The market value of Gap Inc is measured differently than its book value, which is the value of Gap that is recorded on the company's balance sheet. Investors also form their own opinion of Gap's value that differs from its market value or its book value, called intrinsic value, which is Gap's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Gap's market value can be influenced by many factors that don't directly affect Gap's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Gap's value and its price as these two are different measures arrived at by different means. Investors typically determine if Gap is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Gap's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.