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Gap (BSP:GPSI34) Cyclically Adjusted PB Ratio : 2.50 (As of Apr. 27, 2024)


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What is Gap Cyclically Adjusted PB Ratio?

As of today (2024-04-27), Gap's current share price is R$108.50. Gap's Cyclically Adjusted Book per Share for the quarter that ended in Jan. 2024 was R$43.42. Gap's Cyclically Adjusted PB Ratio for today is 2.50.

The historical rank and industry rank for Gap's Cyclically Adjusted PB Ratio or its related term are showing as below:

BSP:GPSI34' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 0.73   Med: 3.41   Max: 6.67
Current: 2.46

During the past years, Gap's highest Cyclically Adjusted PB Ratio was 6.67. The lowest was 0.73. And the median was 3.41.

BSP:GPSI34's Cyclically Adjusted PB Ratio is ranked worse than
73.22% of 717 companies
in the Retail - Cyclical industry
Industry Median: 1.16 vs BSP:GPSI34: 2.46

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 PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

Gap's adjusted book value per share data for the three months ended in Jan. 2024 was R$34.308. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is R$43.42 for the trailing ten years ended in Jan. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Gap Cyclically Adjusted PB Ratio Historical Data

The historical data trend for Gap's Cyclically Adjusted PB Ratio 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 PB Ratio Chart

Gap Annual Data
Trend Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.40 2.23 2.62 2.17 1.56

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 PB Ratio 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 1.56 1.10 1.18 1.46 2.15

Competitive Comparison of Gap's Cyclically Adjusted PB Ratio

For the Apparel Retail subindustry, Gap's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio 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 PB Ratio Distribution in the Retail - Cyclical Industry

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

* The bar in red indicates where Gap's Cyclically Adjusted PB Ratio falls into.



Gap Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB 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 PB Ratio.

Gap's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=108.50/43.42
=2.50

* 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 Book per Share for the quarter that ended in Jan. 2024 is calculated as:

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

Adj_Book=Book Value per Share/CPI of Jan. 2024 (Change)*Current CPI (Jan. 2024)
=34.308/129.4194*129.4194
=34.308

Current CPI (Jan. 2024) = 129.4194.

Gap Quarterly Data

Book Value per Share CPI Adj_Book
201404 15.300 100.023 19.797
201407 15.098 100.520 19.439
201410 16.494 100.176 21.309
201501 18.667 98.604 24.501
201504 20.903 99.824 27.100
201507 21.034 100.691 27.035
201510 25.026 100.346 32.277
201601 25.999 99.957 33.662
201604 22.580 100.947 28.949
201607 21.077 101.524 26.868
201610 21.763 101.988 27.617
201701 23.218 102.456 29.328
201704 22.686 103.167 28.459
201707 24.036 103.278 30.120
201710 24.816 104.070 30.861
201801 25.956 104.578 32.122
201804 28.161 105.708 34.478
201807 33.158 106.324 40.360
201810 33.870 106.695 41.084
201901 35.113 106.200 42.790
201904 36.819 107.818 44.196
201907 36.428 108.250 43.552
201910 39.774 108.577 47.409
202001 37.103 108.841 44.118
202004 33.029 108.173 39.516
202007 31.736 109.318 37.572
202010 35.662 109.861 42.011
202101 37.514 110.364 43.991
202104 41.447 112.673 47.607
202107 41.454 115.183 46.578
202110 41.295 116.696 45.797
202201 40.573 118.619 44.267
202204 31.589 121.978 33.516
202207 33.994 125.002 35.195
202210 36.995 125.734 38.079
202301 31.678 126.223 32.480
202304 29.815 127.992 30.147
202307 29.440 128.974 29.542
202310 33.524 129.810 33.423
202401 34.308 129.419 34.308

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book 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  (BSP:GPSI34) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value 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 PB Ratio should give similar results to regular PB Ratio.


Gap Cyclically Adjusted PB Ratio Related Terms

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


Gap (BSP:GPSI34) Business Description

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.

Gap (BSP:GPSI34) Headlines

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