Gap Stock Fair Value Calculation – Gap Shares Slip 0.84% Despite Positive Trading Session for S&P 500

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Gap ($NYSE:GPS) Inc. had a poor showing on Wednesday, with their stock decreasing by 0.84% to $9.50, despite the S&P 500 having a generally positive trading day. This was a surprise to many investors, as Gap Inc. is one of the most successful and established companies in the retail industry.

Analysis – Gap Stock Fair Value Calculation

GoodWhale analyzed Gap’s financials and determined the intrinsic value of GAP share to be around $18.3. Our proprietary Valuation Line methodology was used for this calculation. Currently, GAP stock is traded at $9.5, which is 48.1% below its intrinsic value. This makes GAP stock currently undervalued and presents a great opportunity for investors. More…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Gap. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Gap. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Gap. More…

Key Ratios Snapshot

Some of the financial key ratios for Gap are shown below. More…

Peers

Gap Inc. is an American clothing and accessories retailer founded in 1969 by Don and Doris Fisher. The company operates six primary brands: Gap, Banana Republic, Old Navy, Athleta, Intermix, and Janie and Jack. Gap Inc. is headquartered in San Francisco, California. As of February 2019, Gap Inc. operated 3,727 stores worldwide and employed approximately 135,000 people. Abercrombie & Fitch Co. is an American lifestyle retailer that focuses on selling casual wear for young people. The company was founded in 1892 by David T. Abercrombie and Ezra Fitch and is headquartered in New Albany, Ohio. As of February 2019, the company operated 792 stores across the globe and employed approximately 23,000 people. The Children’s Place Inc. is an American children’s clothing retailer founded in 1969. The company is headquartered in Secaucus, New Jersey and as of February 2019, operated 1,097 stores worldwide. The company employs approximately 19,000 people. World Co Ltd is a Japanese retail company founded in 1949. The company operates a chain of department stores in Japan and as of February 2019, employed approximately 31,000 people.

– Abercrombie & Fitch Co ($NYSE:ANF)

Abercrombie & Fitch Co, a leading retailer of casual apparel, has a market cap of 817.96M as of 2022. The company’s ROE is 14.85%. Abercrombie & Fitch Co operates stores under the Abercrombie & Fitch, abercrombie kids, and Hollister Co. banners in the United States and internationally. The company also sells its merchandise through its e-commerce Websites.

– Children’s Place Inc ($NASDAQ:PLCE)

The Children’s Place Inc is a publicly traded company with a market capitalization of $498.72 million as of 2022. The company operates in the children’s apparel industry and generates revenue through the sale of children’s clothing, shoes, and accessories. The Children’s Place Inc has a return on equity of 55.72%. The company’s primary target market is parents of children aged 0-12 years old.

– World Co Ltd ($TSE:3612)

Suntech Power Holdings Co., Ltd. is a solar company. The Company manufactures solar cells and modules, which it sells to original equipment manufacturers and system integrators. Suntech also develops, designs, builds and sells photovoltaic systems that primarily use the Company’s solar modules.

Summary

Gap Inc. stock saw a slight decrease in value of 0.84% to $9.50 in Wednesday trading. This decline was part of a generally positive day for the stock market, as the S&P 500 Index experienced gains. Investors may want to keep an eye on Gap Inc., as the stock could potentially still have further growth potential in the future. Performing some research on the company’s financials, management, industry trends, and competition could be helpful in helping investors decide whether or not to invest in this stock.