The Gap, Inc. (GAP) Financial Ratios
30 years of historical data (1996–2025) · Consumer Cyclical · Apparel - Retail
EV/EBITDA
↓
6.59
↓-41% vs avg
5yr avg: 11.23
30Y Low2.5·High23.4
P/FCF
↓
9.25
↓-58% vs avg
5yr avg: 22.11
30Y Low4.9·High167.1
P/B Ratio
↑
2.14
↓-19% vs avg
5yr avg: 2.63
30Y Low1.8·High24.6
ROE
↑
23.1%
↓+56% vs avg
5yr avg: 14.8%
30Y Low-22%·High59%
Debt/EBITDA
↓
3.48
↓-41% vs avg
5yr avg: 5.89
30Y Low0.0·High12.8
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
GAP Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
The Gap, Inc. trades at 9.9x earnings, 39% below its 5-year average of 16.2x, sitting at the 7th percentile of its historical range. Compared to the Consumer Cyclical sector median P/E of 21.2x, the stock trades at a discount of 53%. On a free-cash-flow basis, the stock trades at 9.3x P/FCF, 58% below the 5-year average of 22.1x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $7.6B | $10.7B | $9.2B | $7.0B | $5.0B | $6.9B | $7.6B | $6.6B | $9.9B | $13.2B | $9.2B |
| Enterprise Value | $10.6B | $13.7B | $12.4B | $10.6B | $9.8B | $12.3B | $13.2B | $12.9B | $10.0B | $12.6B | $8.7B |
| P/E Ratio → | 9.88 | 13.07 | 10.94 | 13.95 | — | 26.97 | — | 18.72 | 9.82 | 15.53 | 13.63 |
| P/S Ratio | 0.50 | 0.70 | 0.61 | 0.47 | 0.32 | 0.42 | 0.55 | 0.40 | 0.60 | 0.83 | 0.59 |
| P/B Ratio | 2.14 | 2.83 | 2.83 | 2.71 | 2.23 | 2.54 | 2.90 | 1.98 | 2.78 | 4.19 | 3.17 |
| P/FCF | 9.25 | 13.06 | 8.90 | 6.32 | — | 60.18 | — | 17.98 | 14.60 | 20.28 | 7.71 |
| P/OCF | 5.89 | 8.31 | 6.22 | 4.59 | 8.20 | 8.55 | 31.96 | 4.66 | 7.15 | 9.54 | 5.36 |
P/E links to full P/E history page with 30-year chart
GAP EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
The Gap, Inc.'s enterprise value stands at 6.6x EBITDA, 41% below its 5-year average of 11.2x. The Consumer Cyclical sector median is 12.2x, placing the stock at a 46% discount on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.89 | 0.82 | 0.71 | 0.63 | 0.74 | 0.96 | 0.79 | 0.61 | 0.80 | 0.56 |
| EV / EBITDA | 6.59 | 8.53 | 7.68 | 9.79 | 20.78 | 9.36 | — | 11.40 | 5.17 | 6.20 | 4.90 |
| EV / EBIT | 9.51 | 12.32 | 10.12 | 16.40 | — | 25.09 | — | 21.35 | 7.20 | 8.43 | 7.29 |
| EV / FCF | — | 16.69 | 11.92 | 9.53 | — | 106.91 | — | 35.23 | 14.85 | 19.46 | 7.32 |
GAP Profitability
Margins and return-on-capital ratios measuring operating efficiency
The Gap, Inc. earns an operating margin of 7.3%, above the Consumer Cyclical sector average of 2.0%. Operating margins have expanded from 3.8% to 7.3% over the past 3 years, signaling improving operational efficiency. ROE of 23.1% indicates solid capital efficiency, compared to the sector median of 5.3%. ROIC of 12.7% represents solid returns on invested capital versus a sector median of 5.2%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 40.8% | 40.8% | 41.3% | 38.8% | 34.3% | 39.8% | 34.1% | 37.4% | 38.1% | 38.3% | 36.3% |
| Operating Margin | 7.3% | 7.3% | 7.4% | 3.8% | -0.4% | 4.9% | -6.2% | 3.5% | 8.2% | 9.3% | 7.7% |
| Net Profit Margin | 5.3% | 5.3% | 5.6% | 3.4% | -1.3% | 1.5% | -4.8% | 2.1% | 6.0% | 5.3% | 4.4% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 23.1% | 23.1% | 28.8% | 20.8% | -8.2% | 9.6% | -22.4% | 10.2% | 30.0% | 28.0% | 24.8% |
| ROA | 6.7% | 6.7% | 7.4% | 4.5% | -1.7% | 1.9% | -4.8% | 3.2% | 12.5% | 10.9% | 9.0% |
| ROIC | 12.7% | 12.7% | 13.3% | 6.4% | -0.7% | 7.4% | -7.2% | 6.4% | 32.3% | 44.0% | 33.5% |
| ROCE | 12.4% | 12.4% | 13.4% | 7.0% | -0.8% | 8.7% | -8.5% | 7.0% | 23.9% | 27.7% | 23.6% |
GAP Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
The Gap, Inc. carries a Debt/EBITDA ratio of 3.5x, which is moderately leveraged (27% below the sector average of 4.8x). Net debt stands at $3.0B ($5.6B total debt minus $2.6B cash). Interest coverage of 48.5x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.48 | 1.48 | 1.68 | 2.10 | 2.70 | 2.30 | 2.93 | 2.32 | 0.35 | 0.40 | 0.45 |
| Debt / EBITDA | 3.48 | 3.48 | 3.40 | 5.03 | 12.78 | 4.76 | — | 6.79 | 0.64 | 0.61 | 0.74 |
| Net Debt / Equity | — | 0.79 | 0.96 | 1.37 | 2.15 | 1.97 | 2.17 | 1.90 | 0.05 | -0.17 | -0.16 |
| Net Debt / EBITDA | 1.86 | 1.86 | 1.95 | 3.30 | 10.20 | 4.09 | — | 5.58 | 0.09 | -0.26 | -0.26 |
| Debt / FCF | — | 3.64 | 3.02 | 3.21 | — | 46.73 | — | 17.25 | 0.25 | -0.82 | -0.39 |
| Interest Coverage | 48.48 | 48.48 | 14.07 | 7.18 | -0.58 | 2.93 | -4.74 | 7.95 | 19.11 | 20.24 | 15.99 |
GAP Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.75x means The Gap, Inc. can comfortably meet its short-term obligations, though there is limited excess liquidity. The quick ratio of 1.08x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has improved from 1.42x to 1.75x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.75 | 1.75 | 1.60 | 1.42 | 1.42 | 1.27 | 1.55 | 1.41 | 1.96 | 1.86 | 1.76 |
| Quick Ratio | 1.08 | 1.08 | 0.96 | 0.78 | 0.68 | 0.53 | 0.92 | 0.74 | 0.98 | 1.04 | 1.01 |
| Cash Ratio | 0.91 | 0.91 | 0.79 | 0.60 | 0.37 | 0.22 | 0.62 | 0.52 | 0.63 | 0.72 | 0.74 |
| Asset Turnover | — | 1.22 | 1.27 | 1.35 | 1.37 | 1.31 | 1.00 | 1.20 | 2.06 | 1.98 | 2.04 |
| Inventory Turnover | 4.12 | 4.12 | 4.29 | 4.57 | 4.29 | 3.32 | 3.71 | 4.75 | 4.81 | 4.90 | 5.40 |
| Days Sales Outstanding | — | — | 7.94 | 7.97 | 11.45 | 8.74 | 9.60 | 8.76 | 7.07 | 6.49 | 7.88 |
GAP Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
The Gap, Inc. returns 5.1% to shareholders annually — split between a 3.0% dividend yield and 2.0% buyback yield. The payout ratio of 30.3% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 10.1% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.0% | 2.3% | 2.4% | 3.2% | 4.4% | 3.3% | — | 5.5% | 3.8% | 2.7% | 4.0% |
| Payout Ratio | 30.3% | 30.3% | 26.7% | 44.2% | — | 88.3% | — | 103.7% | 37.2% | 42.6% | 54.3% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 10.1% | 7.6% | 9.1% | 7.2% | — | 3.7% | — | 5.3% | 10.2% | 6.4% | 7.3% |
| FCF Yield | 10.8% | 7.7% | 11.2% | 15.8% | — | 1.7% | — | 5.6% | 6.8% | 4.9% | 13.0% |
| Buyback Yield | 2.0% | 1.4% | 0.8% | 0.0% | 2.5% | 2.9% | 0.0% | 3.0% | 4.0% | 2.4% | 0.0% |
| Total Shareholder Yield | 5.1% | 3.7% | 3.2% | 3.2% | 6.9% | 6.2% | 0.0% | 8.6% | 7.8% | 5.1% | 4.0% |
| Shares Outstanding | — | $384M | $384M | $376M | $367M | $383M | $374M | $378M | $388M | $396M | $400M |
Peer Comparison
Compare GAP with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 GAPYou | $8B | 9.9 | 6.6 | 9.3 | 40.8% | 7.3% | 23.1% | 12.7% | 3.5 |
 ANF | $4B | 8.3 | 5.1 | 10.4 | 61.5% | 13.3% | 36.6% | 31.2% | 1.4 |
 AEO | $3B | 16.3 | 8.3 | 6.5 | 33.0% | 6.0% | 11.1% | 8.1% | 3.2 |
 URBN | $7B | 15.1 | 10.5 | 15.4 | 36.0% | 9.8% | 17.6% | 13.1% | 1.7 |
 PVH | $4B | 145.4 | 29.1 | 6.6 | 57.5% | 7.3% | 0.5% | 6.1% | 17.5 |
 HBI | $2B | -7.1 | 16.6 | 10.1 | 38.8% | 5.3% | -141.4% | 4.5% | 9.2 |
 RL | $25B | 27.3 | 22.2 | 33.8 | 69.9% | 14.5% | 34.7% | 24.7% | 2.5 |
 LULU | $13B | 8.4 | 4.7 | 13.8 | 56.6% | 19.9% | 34.0% | 37.4% | 0.7 |
 CATO | $59M | -10.6 | — | — | 32.5% | -2.2% | -3.7% | -3.7% | — |
 BURL | $21B | 35.4 | 20.6 | 123.6 | 43.9% | 7.3% | 38.4% | 10.3% | 4.8 |
 TLYS | $133M | -7.6 | — | — | 29.7% | -21.2% | -18.8% | -36.5% | — |
| Consumer Cyclical Median | — | 21.2 | 12.2 | 15.6 | 36.2% | 2.0% | 5.3% | 5.2% | 4.8 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
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GAP — Frequently Asked Questions
Quick answers to the most common questions about buying GAP stock.
What is The Gap, Inc.'s P/E ratio?
The Gap, Inc.'s current P/E ratio is 9.9x. The historical average is 18.4x. This places it at the 7th percentile of its historical range.
What is The Gap, Inc.'s EV/EBITDA?
The Gap, Inc.'s current EV/EBITDA is 6.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.0x.
What is The Gap, Inc.'s ROE?
The Gap, Inc.'s return on equity (ROE) is 23.1%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 24.2%.
Is GAP stock overvalued?
Based on historical data, The Gap, Inc. is trading at a P/E of 9.9x. This is at the 7th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is The Gap, Inc.'s dividend yield?
The Gap, Inc.'s current dividend yield is 3.04% with a payout ratio of 30.3%.
What are The Gap, Inc.'s profit margins?
The Gap, Inc. has 40.8% gross margin and 7.3% operating margin.
How much debt does The Gap, Inc. have?
The Gap, Inc.'s Debt/EBITDA ratio is 3.5x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.