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GapGAP -3.92%73 EV-to-EBIT is 7.00 as of Jul. 23, 2026, which is 23% below its 10-year median of 9.06. GuruFocus rates GAP with a GF Score™ of 73/100 and a GF Value™ of $22.50 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 877 Retail - Cyclical companies, Gap ranks better than 78.34% on this metric.
EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Gap's Enterprise Value is $9,877 Mil.
Gap's EBIT for the trailing twelve months (TTM) ended in Apr. 2026 was $1,411 Mil. Therefore, Gap's EV-to-EBIT for today is 7.00.
The historical rank and industry rank for Gap's EV-to-EBIT or its related term are showing as below:
GAP'
s EV-to-EBIT Range Over the Past 10 Years
Min: -476.35 Med: 9.06 Max: 194.78
Current: 7
During the past 13 years, the highest EV-to-EBIT of Gap was 194.78. The lowest was -476.35. And the median was 9.06.
GAP's EV-to-EBIT is ranked better than 78.34% of 877
companies
in the Retail - Cyclical industry
Industry Median: 13.63
vs GAP: 7.00
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Gap's Enterprise Value for the quarter that ended in Apr. 2026 was $11,958 Mil.
Gap's EBIT for the trailing twelve months (TTM) ended in Apr. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,411 Mil.
* 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 EV-to-EBIT Related Terms
Gap EV-to-EBIT Historical Data
* Premium members only.
The historical data trend for Gap's EV-to-EBIT 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.
For the Apparel Retail subindustry, Gap's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Gap's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Gap's EV-to-EBIT falls into.
Gap's current Enterprise Value is $9,877 Mil.
Gap's EBIT for the trailing twelve months (TTM) ended in Apr. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,411 Mil.
* 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 (GAP) has a EV-to-EBIT of 7.00 as of Jul. 23, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Gap and its competitors. This is 23% below median its historical median of 9.06. According to the industry distribution chart, Gap ranks #190 out of 877 companies in the Retail - Cyclical industry, placing it in the top 21.7%.
Is Gap's EV-to-EBIT too high?
Gap's current EV-to-EBIT of 7.00 is 23% below median its 10-year median of 9.06. The Retail - Cyclical industry median EV-to-EBIT is 13.63. Gap's value of 7.00 is 48.6% below this industry median. Based on the distribution chart, Gap ranks #190 out of 877 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Gap has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Gap's EV-to-EBIT compare to VSXY and URBN?
According to the Retail - Cyclical industry distribution chart, Gap ranks #190 out of 877 companies for EV-to-EBIT. This places Gap in the top 22% of its industry — outperforming the majority of peers. The industry median EV-to-EBIT is 13.63. Gap's value of 7.00 is 48.6% below this benchmark. While the company's 10-year median is 9.06 vs. the industry median of 13.63, Gap has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBIT for a Retail - Cyclical company?
The median EV-to-EBIT among Retail - Cyclical companies is 13.63, based on 877 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Gap's current EV-to-EBIT of 7.00 is 48.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Gap and its competitors. For the Retail - Cyclical industry, the median EV-to-EBIT is 13.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gap's current EV-to-EBIT is 7.00, which is 23% below median its own 10-year median of 9.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gap stock overvalued right now?
Based on GuruFocus' analysis, Gap (GAP) is currently considered Modestly Undervalued. The stock's GF Value™ is $22.50, compared to a current price of $18.88 — trading 16.1% below its estimated fair value. The current EV-to-EBIT is 7.00, which is 23% below median its 10-year median of 9.06 and 48.6% below the Retail - Cyclical industry median of 13.63. Gap's overall GF Score™ is 73/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Gap (GAP), the current EV-to-EBIT is 7.00 as of Jul. 23, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Gap (GAP) Overvalued in 2026?
Based on GuruFocus' analysis, Gap stock appears to be undervalued.
The current stock price of $18.88 is trading 16.1% below its estimated GF Value™ of $22.50.
GuruFocus considers Gap to be Modestly Undervalued.
Key valuation signals for GAP:
EV-to-EBIT: 7.00 (23% below median its 10-year median of 9.06)
GF Value™: $22.50 vs. price of $18.88 (16.1% below fair value)
Industry Position: 48.6% below the Retail - Cyclical median (#190 of 877)
No single metric tells the full story. See the GAP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gap retails apparel, accessories, footwear, 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 2,500 stores in North America, Europe, and Asia and franchises about 1,000 more in Asia, Europe, Latin America, and other regions. Gap was founded in 1969 and is based in San Francisco.
73GF Score
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