Top line stable.
+1.8% YoY versus +1.3% prior. 3y CAGR −0.5%.
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Consumer Discretionary · Market Cap: $7.6B
Live price unavailable
Fundamentals as of 2026-05-02
All analysis on this page is for educational purposes only and does not constitute financial advice. Fair values are model-based estimates. Always do your own research.
1 of 2 legendary models say BUY GAP — but Joel Greenblatt disagrees.
What would legendary investors pay for GAP?
These figures are not quotes or opinions from Buffett, Graham, Lynch or the other investors. They are our own estimates, computed by applying the intrinsic-value formulas each investor is known for to this company’s financials.
For educational purposes only. Not a recommendation to buy or sell securities.
Bottom line: GAP splits the legendary models — 1 BUY, 0 HOLD, 1 AVOID, but earns a B sector grade (66/100) in Consumer Discretionary. Whether the premium is justified depends on which lens you trust. Drill into the valuation breakdown and sector ranking for the full picture.
The Question
+1.8% YoY versus +1.3% prior. 3y CAGR −0.5%.
+1.8%Net margin 5.3% versus 5.6% prior (−0.3pp). Operating 7.3%.
5.3%P/E 8.5x — 29% below the 5y median of 12.0x. Forward 10.0x signals EPS contraction next year.
8.5x1 of 2 legendary investor models rate GAP a BUY. Fair value estimates and full investor breakdown are in the valuation tab.
Average fair value across qualifying models: $42. See the per-investor fair-value table in the valuation tab.
GAP trades at 8.3x earnings. Sector context and per-investor signals are in the valuation tab.
GAP and LKQ differ on P/E, ROE, and revenue growth. See the full GAP vs LKQ compare matrix.
Buffett and Greenblatt evaluate GAP against their respective frameworks. Per-model fair value and reasoning are in the valuation tab.
GAP's P/E ratio is 8.3x. 5-year P/E history is in the financials tab
Yes — The Gap, Inc.'s 26.3% ROE ranks above the S&P 500 median, and D/E 2.32 stays within healthy bounds.
Financial story
Yes — The Gap, Inc.'s 26.3% ROE shows strong capital efficiency, and its 2.32 debt-to-equity stays within healthy bounds.
How does GAP compare?
See exactly where GAP ranks
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Sign in to see the rankingGAP sits at #8 in Consumer Discretionary with a B grade (66/100).