Gap Stock

Gap EV/EBIT

The EV/EBIT (Enterprise Value to EBIT) of Gap (GAP) as of Aug 9, 2026 is 8.05. In the previous year, EV/EBIT (Enterprise Value to EBIT) was 8.07 — a change of -0.27% (lower).

EV/EBIT

8.05

YoY

-0.27%

Last updated:

EV/EBIT (Enterprise Value to EBIT) of Gap is 2026 8.05 . EV/EBIT (Enterprise Value to EBIT) of Gap was 2025 8.07 . It decreases by -0.27% lower compared to the previous year.

The Gap EV/EBIT history

  • 3 Years

  • 10 Years

  • 25 Years

  • Max

PRICE-TO-EBIT
Date
PRICE-TO-EBIT
Jan 1, 2019
4.88 base
Jan 1, 2020
13.37 base
Jan 1, 2021
-7.70 base
Jan 1, 2022
5.10 base
Jan 1, 2023
-113.64 base
Jan 1, 2024
16.16 base
Jan 1, 2025
8.75 base
Jan 1, 2026
6.94 base
YEARPRICE-TO-EBIT
2026 6.94
2025 8.75
2024 16.16
2023 -113.64
2022 5.10
2021 -7.70
2020 13.37
2019 4.88
2018 6.74
2017 11.24
2016 5.89
2015 4.84
2014 8.56
2013 9.42
2012 10.53
2011 4.76
2010 7.64
2009 8.13
2008 7.25
2007 13.99
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Gap Valuation

Details

Historical Valuation Multiples

Price-to-Earnings Ratio (P/E)

The P/E ratio divides Gap's share price by its earnings per share. It tells you how many years of current earnings you are "paying for" when you buy the stock. A P/E of 20 means you pay $20 for every $1 of annual earnings. The S&P 500 historically trades at an average P/E of roughly 15–17. A P/E significantly above that may signal high growth expectations; one below may indicate undervaluation — or declining business quality.

Price-to-Sales Ratio (P/S)

The P/S ratio divides market capitalization by total revenue. Unlike the P/E ratio, it works even for companies that are not yet profitable, making it essential for evaluating high-growth firms. A P/S below 1.0 may indicate undervaluation, while ratios above 10 are typically reserved for fast-growing tech or SaaS companies with high expected future margins.

Price-to-EBIT Ratio

This ratio relates Gap's market price to its operating earnings, excluding the effects of debt structure and tax jurisdiction. It is particularly useful for comparing companies across different countries or with different levels of leverage, because it focuses purely on operational profitability. Lower values suggest cheaper operational earnings.

How to Use This Chart

This chart plots Gap's valuation multiples over time. Compare the current P/E, P/S, and P/EBIT to their own historical averages — if the current ratio is well below the multi-year average, the stock may be relatively cheap compared to its own track record. Combine this with industry comparisons: a P/E that looks high in absolute terms may be justified if Gap grows earnings faster than its peers.

Gap Stock analysis

What does Gap do? Gap Inc. is a global leading clothing company that offers its customers a wide range of stylish and high-quality products. The company was founded in 1969 by Donald Fisher and Doris Fisher and is headquartered in San Francisco, California. Originally, the company specialized only in jeans and started as a small store in San Francisco under the name "The Gap," eventually becoming a multinational corporation with an annual revenue of over $16 billion. Gap now operates more than 3,000 stores in 90 countries worldwide and employs nearly 135,000 employees. Gap Inc.'s business model is multi-faceted. It includes a variety of brands, each with a unique offering and style. The brands include Gap, Banana Republic, Old Navy, Athleta, and Intermix. Each brand focuses on a different customer group and has its own brand image and pricing structures. Gap targets younger generations with a sporty, trendy style and the latest fashion trends. Banana Republic offers a high-end and fashion-conscious clothing line for working adults. Old Navy has an affordable, practical clothing line for children, men, and women, while Athleta offers a high-end women's sportswear line. Intermix has accessories, outfits, and fashionable trends for women. The company offers a wide range of products in women's, men's, and children's fashion, accessories, shoes, and athletic wear. The products are diverse and range from polo shirts, jeans, skirts, dresses, sweaters, jackets, and pants to athletic wear, shoes, and accessories. Gap Inc. attracts customers with both affordable and high-quality products that are stylish and trend-oriented. The company is known for following fashion trends and has achieved many successes in doing so. In 2007, Gap designed an environmental protection initiative and released an eco-friendly denim line that consumes less water than conventional jeans and included up to 20% recycled cotton. In 2018, Gap Inc. committed to using 100% sustainable cotton by 2021 and increasing reusability, recyclability, and regenerability in its products and packaging by 2023. The company has also made efforts to integrate online and retail to create a seamless shopping experience for customers. Gap Inc.'s online stores are well-organized and allow customers to easily navigate between different brands, products, and price categories to find exactly what they are looking for. The customer service is also excellent, with a 24-hour hotline and easy return and exchange policies. However, the company has faced some challenges in the past. In recent years, some stores have had to close as the company could no longer keep up with the competition. Sales have also declined in various markets. However, there are signs that Gap Inc. can reverse the trend by focusing on its core competencies and building a stronger online presence. Overall, Gap Inc. is a solid and successful company that offers its customers a wide range of high-quality and trendy products. The company has achieved many successes and strives to keep up with the latest fashion trends. With smart management and a strong online presence, Gap Inc. has every chance of continuing to be successful in the future. Gap is one of the most popular companies on Eulerpool.

Frequently Asked Questions about Gap stock

EV/EBIT (Enterprise Value to EBIT) of Gap is 8.05 in 2026.

EV/EBIT (Enterprise Value to EBIT) of Gap changed from 8.07 to 8.05, representing a -0.27% change. The value is lower than the previous year.

On Eulerpool you can find the complete historical development of EV/EBIT (Enterprise Value to EBIT) Gap since 2006 – with annual values, charts, and detailed analysis.

The EV/EBIT ratio measures a company's enterprise value relative to its operating earnings. It accounts for debt, making it useful for comparing companies with different capital structures.

EV/EBIT = Enterprise Value / Earnings Before Interest and Taxes

To evaluate EV/EBIT (Enterprise Value to EBIT)'s, it is essential to compare it with peers in the same industry and sector. On Eulerpool, you can find direct industry comparisons for EV/EBIT (Enterprise Value to EBIT).

A 'good' varies by industry and company stage. On Eulerpool, you can compare EV/EBIT (Enterprise Value to EBIT)'s Gap with sector peers and the industry average to assess whether it is attractive.

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Valuation — Gap

All Key Metrics — Gap