Gap (GAP) ROCE %: 19.17% (As of Apr. 2026)


GAP Gap Inc GAP
72 GF Score
Price $20.22
GF Value $22.53
Valuation Modestly Undervalued
! 3 Warning Signs
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What is Gap ROCE %?

Gap GAP -3.37% 72 ROCE % is 19.17% as of Apr. 2026. GuruFocus rates GAP with a GF Score™ of 72/100 and a GF Value™ of $22.53 (Modestly Undervalued). The stock has 3 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Gap's annualized ROCE % for the quarter that ended in Apr. 2026 was 19.17%.

Gap  (NYSE:GAP) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Gap ROCE % Related Terms

Gap ROCE % Historical Data

* Premium members only.

The historical data trend for Gap's ROCE % 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.

Gap ROCE % Chart

Gap Annual Data
Trend Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25 Jan26
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.28 -0.61 8.04 14.77 12.42

Gap Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
ROCE % 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 13.19 14.45 15.96 9.94 19.17
GAP
72GF Score
Gap Inc GAP
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Gap ROCE % Calculation

Gap's annualized ROCE % for the fiscal year that ended in Jan. 2026 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Jan. 2026 )  (A: Jan. 2025 )(A: Jan. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Jan. 2026 )  (A: Jan. 2025 )(A: Jan. 2026 )
=1115/( ( (11885 - 3256) + (12632 - 3300) )/ 2 )
=1115/( (8629+9332)/ 2 )
=1115/8980.5
=12.42 %

Gap's ROCE % of for the quarter that ended in Apr. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Apr. 2026 )  (Q: Jan. 2026 )(Q: Apr. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Apr. 2026 )  (Q: Jan. 2026 )(Q: Apr. 2026 )
=1780/( ( (12632 - 3300) + (12137 - 2901) )/ 2 )
=1780/( ( 9332 + 9236 )/ 2 )
=1780/9284
=19.17 %

(1) Note: The EBIT data used here is four times the quarterly (Apr. 2026) EBIT data.

* 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 19.17% mean?
Gap (GAP) has a ROCE % of 19.17% as of Apr. 2026.
Is Gap's ROCE % too high?
Gap's current ROCE % is 19.17%. The Retail - Cyclical industry median ROCE % is 7.58. Gap's value of 19.17% is 152.9% above this industry median. Overall, Gap has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Gap's ROCE % compare to URBN and BOOT?
Gap's ROCE % of 19.17% can be compared against companies in the Retail - Cyclical industry. The industry median ROCE % is 7.58. Gap's value of 19.17% is 152.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Retail - Cyclical company?
The median ROCE % among Retail - Cyclical companies is 7.58, based on 1,117 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Gap's current ROCE % of 19.17% is 152.9% above 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Retail - Cyclical industry, the median ROCE % is 7.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gap's current ROCE % is 19.17%. 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 $22.53, compared to a current price of $20.22 — trading 10.3% below its estimated fair value. The current ROCE % is 19.17% and 152.9% above the Retail - Cyclical industry median of 7.58. Gap's overall GF Score™ is 72/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Gap (GAP), the current ROCE % is 19.17% as of Apr. 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 $20.22 is trading 10.3% below its estimated GF Value™ of $22.53. GuruFocus considers Gap to be Modestly Undervalued.

Key valuation signals for GAP:

  • ROCE %: 19.17%
  • GF Value™: $22.53 vs. price of $20.22 (10.3% below fair value)
  • GF Score™: 72/100 with 3 warning signs
  • Industry Position: 152.9% above the Retail - Cyclical median

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 Business Description

Address Two Folsom Street, San Francisco, CA, USA, 94105
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.
72GF Score

Get the complete analysis for GAP

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$20.22
Price
$22.53
GF Value