The Gap, Inc. ranks slightly below the peer group median, with valuation as the main structural pillar while the other dimensions offer less support. The market setup is mixed, without a clear directional signal.
Peer-relative scores, weakest to strongest
The Gap, Inc. designs, sources, markets, and sells apparel and accessories worldwide. The company operates across multiple brands in the highly competitive apparel retail sector.
The market prices GAP based on recovery probability and peer lag, not on sustainable earnings power. With a ROIC of 4.2% (trails peer median over FY25–FY26) and operating margin at 4.8% (below sector average in last two years), the market penalizes GAP’s cyclical exposure and undifferentiated positioning by consistently assigning it a discount relative to peers. In apparel retail, with intense fast-fashion and e-commerce competition, GAP currently lacks the adaptability and efficiency of peers, reinforcing the persistent valuation gap. The market assigns no premium and keeps GAP below peer valuation levels. Only sustained margin improvement and capital returns at peer level for at least two quarters would shift the market’s valuation view.
Break down GAP's position across all dimensions with the full interactive tool.
This analysis is rule-based and descriptive. Peer-relative scores are derived from functional peer group comparisons using publicly available financial data. Scores reflect structural positioning only and do not constitute investment advice, a buy or sell recommendation, or a forecast of future performance. AssetNext peer scores are recalculated periodically as new data becomes available.
AssetNext scores reflect each company's structural position within its functional peer group — not a ranking against all stocks simultaneously. Peers are identified by similarity across eight financial dimensions, including revenue growth trajectory, margin structure, capital intensity, and earnings stability. A score of 75 means the company ranks in the top quartile within its own peer group, not the entire market.
Four dimension scores drive the overall peer score: Growth (revenue trajectory and expansion dynamics), Quality (margin structure and capital efficiency), Valuation (peer-relative pricing on standard multiples), and Stability (earnings consistency and financial predictability). Each dimension is scored 0–100 relative to the peer group, then combined into an overall peer score using equal weighting.
Because scores are peer-relative, the same company can have slightly different scores in different index universes. On comparison pages, both companies are shown within their shared peer universe wherever possible — so the scores are directly comparable. The peer basis is stated on each score card.
Scores are recalculated periodically as underlying financial data is updated. All analysis is descriptive and rule-based — AssetNext describes structural realities and never issues buy, sell or hold recommendations.