GAP Gap PE ratio, current and historical analysis
- Stocks
- Consumer Cyclical
- NYSE: GAP
- PE Ratio
As of Jul 23, 2025, the Gap stock's PE ratio is 8.85. This results from the current EPS of $2.33 and stock price of $20.63. The P/E ratio has a decrease of 13% from the past four quarters average of 10.1.
GAP PE ratio history
The PE ratio of Gap has averaged 18.75 over the last ten years. The current PE ratio of 8.85 is 53% below the historical average. Over the past ten years, GAP's PE ratio was at its highest in the Oct 2023 quarter at 106.42, when the stock price was $12.77 and the EPS was $0.12. The lowest value was in the Aug 2019 quarter, when it reached 7.33 with a price of $18.04 and an EPS of $2.46.
Gap PE ratio history chart
Gap PE ratio by year
Maximum annual increase: 95.41% in 2020
Maximum annual decrease: -35.53% in 2019
| Year | PE ratio | PE change | Price | EPS |
|---|---|---|---|---|
| 2025 | 10.75 | -26.22% | $24.07 | $2.24 |
| 2024 | 14.57 | N/A | $19.81 | $1.36 |
| 2023 | N/A | N/A | $13.2 | -$0.55 |
| 2022 | 26.13 | N/A | $17.77 | $0.68 |
| 2021 | N/A | N/A | $20.25 | -$1.78 |
| 2020 | 18.72 | 95.41% | $17.41 | $0.93 |
| 2019 | 9.58 | -35.53% | $25 | $2.61 |
| 2018 | 14.86 | 11.23% | $32.09 | $2.16 |
| 2017 | 13.36 | 21.01% | $22.58 | $1.69 |
| 2016 | 11.04 | -22.25% | $24.72 | $2.24 |
| 2015 | 14.2 | 3.65% | $41.19 | $2.9 |
| 2014 | 13.7 | -2.35% | $38.08 | $2.78 |
| 2013 | 14.03 | 16.33% | $32.97 | $2.35 |
| 2012 | 12.06 | 18.7% | $18.93 | $1.57 |
| 2011 | 10.16 | -15.33% | $19.2 | $1.89 |
Gap PE ratio by quarter (TTM)
| Year | PE ratio | PE change | Price | EPS |
|---|---|---|---|---|
| May 2025 | 9.87 | -8.19% | $22.99 | $2.33 |
| Feb 2025 | 10.75 | 14% | $24.07 | $2.24 |
| Nov 2024 | 9.43 | -10.45% | $20.74 | $2.2 |
| Aug 2024 | 10.53 | -10.76% | $21.7 | $2.06 |
| May 2024 | 11.8 | -19.01% | $21.59 | $1.83 |
| Feb 2024 | 14.57 | -86.31% | $19.81 | $1.36 |
| Oct 2023 | 106.42 | 208.46% | $12.77 | $0.12 |
| Jul 2023 | 34.5 | N/A | $10.35 | $0.3 |
| Apr 2023 | N/A | N/A | $9.6 | -$0.15 |
| Jan 2023 | N/A | N/A | $13.2 | -$0.55 |
| Oct 2022 | 70.31 | N/A | $11.25 | $0.16 |
| Jul 2022 | N/A | N/A | $9.62 | -$1.01 |
| Apr 2022 | N/A | N/A | $12.42 | -$0.2 |
| Jan 2022 | 26.13 | 55.44% | $17.77 | $0.68 |
| Oct 2021 | 16.81 | 15.22% | $22.69 | $1.35 |
GAP Price vs fair value
You can ether set your own Fair P/E multiple or use one of the automatically calculated Fair P/E multiples.
Fair P/E calculation
PE Ratio is an attempt to estimate a fair PE ratio of a stock based on its earnings and growth rate.
This formula is a modified version of the classic Graham-Dodd Formula (V= EPS x (8.5+2g)), originally developed by Benjamin Graham, to calculate the fair price of a stock based on its earnings and growth rate.
The formula we have created is an adaptation of this approach, designed to maintain a balance between simplicity and growth sensitivity.
It is calculated using the following formula:
IF g < 5: Fair PE = b
IF g >= 5: Fair PE = m × g
Here’s what each part of the formula means:
g: Growth is calculated as the average of the three-year average EPS growth rate and the one-year EPS growth rate (annually). This approach provides a balanced measure of growth by factoring in both the long-term growth trend and the most recent annual growth performance. If one of the growth metrics is not available, the remaining metric is used to determine growth. The fair P/E value is capped at 100 to prevent distortions caused by extreme EPS growth rates, such as those resulting from large percentage increases from a low base.
m: This is the long term historical median PEG (Price/Earnings to Growth) ratio of the overall market. It serves as a benchmark, adjusting the Fair PE based on typical market conditions.
b: Base PE (static value set to 8). If the company's growth rate is less than 5, the Fair PE is set at a conservative baseline of 8. This is because declining companies generally deserve a lower PE ratio.
Fixed vs Dynamic
Fixed: The Fair PE ratio for all data points is calculated using a single, constant average EPS growth rate, determined based on the most recent period. This means that the same growth rate is applied to all historical data points. Dynamic: The Fair PE ratio for each historical data point is calculated using the trailing average EPS growth rate specific to that point in time. This means that for each data point, the corresponding trailing EPS growth rate is used, ensuring that the Fair PE ratio reflects the growth conditions that were relevant at that specific point in history.
GAP average PE ratio chart
GAP's current P/E ratio is below the 3, 5 and 10-year averages.
PE vs average
GAP PE vs peers
GAP's PE ratio is lower than its peer stocks APP and URBN. Gap is presently trading at a lower PE ratio (8.85) than its peer group average of 20.57.
| Stock name | PE ratio | Market cap |
|---|---|---|
| GAP Gap, Inc. | 8.74 | $7.6B |
| ANF Abercrombie & Fitch Co | 8.97 | $4.5B |
| AEO American Eagle Outfitters Inc | 11.24 | $1.97B |
| BKE Buckle Inc | 12.65 | $2.54B |
| URBN Urban Outfitters Inc | 15.46 | $6.73B |
| GES Guess Inc | 53.16 | $691.3M |
| APP Applovin Corp | 63.64 | $122.31B |
| TLYS Tilly'S Inc | N/A | $65.43M |
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Frequently asked questions
What is Gap's PE ratio?
GAP's price to earnings ratio is 8.85 as of Jul 23, 2025.
What is the 3-year average PE ratio for Gap (GAP)?
As an average over the last 3 years, GAP stock has a PE ratio of 30.91.
What is the 5-year average PE ratio for Gap (GAP)?
As an average over the last 5 years, GAP stock has a PE ratio of 28.04.
What is the highest PE ratio for GAP?
In the last ten years, the Oct 2023 quarter recorded the highest quarterly PE ratio at 106.42.
How does the current PE ratio for GAP compare to its historical average?
GAP's price to earnings ratio is currently 53% below its 10-year historical average.
Why is Gap's PE ratio so low?
GAP's PE ratio of 8.85 is considered low because the company's stock price is trading at a lower multiple of earnings.
How is GAP's PE ratio calculated (Gap PE ratio formula)?
You can calculate the PE ratio by dividing the most recent stock price by the trailing twelve months EPS. As of today (Jul 23, 2025), Gap's stock price is $20.63. The earnings per share for the trailing twelve months (TTM) ending May 2025 is $2.33. Therefore, Gap's P/E ratio for today is 8.85. PE RATIO(8.85) = STOCK PRICE($20.63) / TTM EPS($2.33)
All PE ratio stats are based on quarterly TTM periods, unless otherwise specified.