The GapStock Price and Value Analysis

Should you buy The Gap stock? (NYSE:GPS). Let's see how it does in our automated value investing analysis system.

AdvantagesDisadvantages
  • This stock is available at a great discount!
  • This company has a high dividend yield.
  • This company has stable growth.
  • This company is making money at a decent rate.
  • This company is very stable.
None.

GPS Free Cash Flow Trend

Based on historical returns, we believe that The Gap can grow its free cash at a rate of about 10%. That's positive!

Free Cash Flow trendline for GPS
Free Cash Flow trendline for The Gap

Inside the GPS Numbers

GPS Price
(The Gap stock price per share)
$33.49
[?] GPS Fair Price
(based on intrinsic value)
$52.46
[?] GPS Safety Price (based on a variable margin of safety) $41.97
[?] PE Ratio versus Sector 24% lower than other Services stocks
[?] PE Ratio versus Industry 4% lower than other Apparel Stores stocks
[?] Cash Yield 14.71%
[?] Free Cash Flow Jitter 16%
[?] Dividend Yield 3%

Is The Gap Stock on Sale?

We believe that The Gap may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Even better, The Gap looks like a stock on sale. Based on our analysis—if the company keeps making money the way it has been—you may be looking at a bargain. Keep this stock in mind as you put together your portfolio! See Before You Buy for your next steps (and read our disclaimer about investing risk).

Should You Buy GPS Stock?

Does The Gap have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.