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Gap (LTS:0ITS) Cyclically Adjusted Price-to-FCF : 11.53 (As of May. 17, 2024)


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What is Gap Cyclically Adjusted Price-to-FCF?

As of today (2024-05-17), Gap's current share price is $21.80. Gap's Cyclically Adjusted FCF per Share for the quarter that ended in Jan. 2024 was $1.89. Gap's Cyclically Adjusted Price-to-FCF for today is 11.53.

The historical rank and industry rank for Gap's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

LTS:0ITS' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 2.46   Med: 10.67   Max: 22.67
Current: 11.66

During the past years, Gap's highest Cyclically Adjusted Price-to-FCF was 22.67. The lowest was 2.46. And the median was 10.67.

LTS:0ITS's Cyclically Adjusted Price-to-FCF is ranked better than
53.79% of 435 companies
in the Retail - Cyclical industry
Industry Median: 12.84 vs LTS:0ITS: 11.66

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Gap's adjusted free cash flow per share data for the three months ended in Jan. 2024 was $1.475. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is $1.89 for the trailing ten years ended in Jan. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Gap Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Gap's Cyclically Adjusted Price-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Gap Cyclically Adjusted Price-to-FCF Chart

Gap Annual Data
Trend Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.53 7.57 9.83 8.82 7.49

Gap Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.49 5.48 5.76 6.81 10.02

Competitive Comparison of Gap's Cyclically Adjusted Price-to-FCF

For the Apparel Retail subindustry, Gap's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Gap's Cyclically Adjusted Price-to-FCF Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Gap's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Gap's Cyclically Adjusted Price-to-FCF falls into.



Gap Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Gap's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=21.80/1.89
=11.53

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Gap's Cyclically Adjusted FCF per Share for the quarter that ended in Jan. 2024 is calculated as:

For example, Gap's adjusted Free Cash Flow per Share data for the three months ended in Jan. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Jan. 2024 (Change)*Current CPI (Jan. 2024)
=1.475/130.1244*130.1244
=1.475

Current CPI (Jan. 2024) = 130.1244.

Gap Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201404 0.778 100.023 1.012
201407 0.716 100.520 0.927
201410 -0.142 100.176 -0.184
201501 1.890 98.604 2.494
201504 0.144 99.824 0.188
201507 0.670 100.691 0.866
201510 -0.275 100.346 -0.357
201601 1.594 99.957 2.075
201604 0.073 100.947 0.094
201607 1.090 101.524 1.397
201610 -0.118 101.988 -0.151
201701 1.935 102.456 2.458
201704 -0.048 103.167 -0.061
201707 0.581 103.278 0.732
201710 -0.188 104.070 -0.235
201801 1.303 104.578 1.621
201804 -0.519 105.708 -0.639
201807 1.087 106.324 1.330
201810 -0.421 106.695 -0.513
201901 1.620 106.200 1.985
201904 -1.257 107.818 -1.517
201907 1.042 108.250 1.253
201910 -0.676 108.577 -0.810
202001 1.877 108.841 2.244
202004 -2.855 108.173 -3.434
202007 2.051 109.318 2.441
202010 1.068 109.861 1.265
202101 -0.706 110.364 -0.832
202104 0.561 112.673 0.648
202107 0.795 115.183 0.898
202110 -0.870 116.696 -0.970
202201 -0.215 118.619 -0.236
202204 -1.595 121.978 -1.702
202207 -0.063 125.002 -0.066
202210 -0.208 125.734 -0.215
202301 1.665 126.223 1.716
202304 -0.278 127.992 -0.283
202307 1.162 128.974 1.172
202310 0.573 129.810 0.574
202401 1.475 130.124 1.475

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Gap  (LTS:0ITS) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Gap Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Gap's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Gap (LTS:0ITS) Business Description

Industry
Traded in Other Exchanges
Address
Two Folsom Street, San Francisco, CA, USA, 94105
Gap retails apparel, accessories, and personal-care products under the Gap, Old Navy, Banana Republic, and Athleta brands. Old Navy generates more than half of Gap's sales. The firm also operates e-commerce sites, outlet stores, and specialty stores under various Gap names. Gap operates approximately 2,600 stores in North America, Europe, and Asia and franchises more than 900 stores in Asia, Europe, Latin America, and other regions. Gap was founded in 1969 and is based in San Francisco.

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