The Gap Stock 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 an average dividend yield.
  • This company is very stable.
  • This company has wild ups and downs.
  • This company is making money at a modest rate.

Inside the GPS Numbers

GPS Price
(The Gap stock price per share)
$24.80
[?] GPS Fair Price
(based on intrinsic value)
$42.38
[?] GPS Safety Price (based on a variable margin of safety) $33.90
[?] PE Ratio versus Sector 55% higher than other Consumer Goods stocks
[?] PE Ratio versus Industry 60% lower than other Unknown stocks
[?] Cash Yield 20.46%
[?] Free Cash Flow Jitter 47%
[?] Dividend Yield 2%
Shares Shorted 31,668,627

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 31,668,627 shares shorted. With 231,590,455 shares available for purchase and an average trading volume over the past 10 trading days of 13,569,690, it would take at least 2.334 days for all of the short holders to cover their shorts.

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.