The Gap (GAP) Fundamental Analysis: Revenue, Earnings & Valuation

6.06 / 10

Outperform

Fundamentally, Gap scores 6.1/10 (Outperform). Key strengths include high Profit‑MV, Cash‑MV, ROE and a robust equity multiplier, while cash‑up and ROA metrics show modest weakness. Overall, the balance sheet appears healthy with attractive valuation ratios.

Analysis Checks(7/10)

Annualized return on equity (%)

Value28.81

Score2/3

Weight5.35%

1M Return3.12%

Profit-MV

Value1.19

Score3/3

Weight40.72%

1M Return16.42%

Net income-Revenue

Value-0.40

Score3/3

Weight13.44%

1M Return7.68%

Rate of return on total assets (%)

Value9.70

Score1/3

Weight3.02%

1M Return1.89%

Cash-UP

Value-0.16

Score2/3

Weight1.61%

1M Return1.03%

Annualized return on total assets (%)

Value9.70

Score1/3

Weight3.02%

1M Return1.89%

EBIT / Total operating revenue (%)

Value7.37

Score1/3

Weight3.04%

1M Return1.86%

ROE (%)

Value28.81

Score2/3

Weight5.35%

1M Return3.12%

Equity multiplier (DuPont analysis %)

Value3.91

Score2/3

Weight4.68%

1M Return2.92%

Cash-MV

Value0.99

Score3/3

Weight19.76%

1M Return9.73%

Is GAP undervalued or overvalued?

GAP scores 6.06/10 on fundamentals and holds a Discounted valuation at present. Backed by its 23.10% ROE, 5.31% net margin, 11.64 P/E ratio, 2.50 P/B ratio, and -2.23% earnings growth, these metrics solidify its Outperform investment rating.