GapGAP +2.72%70 5-Year Yield-on-Cost % is 3.66 as of Jul. 09, 2026, which is 8% above its 10-year median of 3.39. GuruFocus rates GAP with a GF Score™ of 70/100 and a GF Value™ of $22.55 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 582 Retail - Cyclical companies, Gap ranks better than 54.98% on this metric.
Gap's yield on cost for the quarter that ended in Apr. 2026 was 3.66.
The historical rank and industry rank for Gap's 5-Year Yield-on-Cost % or its related term are showing as below:
GAP'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.68 Med: 3.39 Max: 17.2
Current: 3.66
During the past 13 years, Gap's highest Yield on Cost was 17.20. The lowest was 0.68. And the median was 3.39.
GAP's 5-Year Yield-on-Cost % is ranked better than 54.98% of 582
companies
in the Retail - Cyclical industry
Industry Median: 3.275
vs GAP: 3.66
Gap (NYSE:GAP) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Gap 5-Year Yield-on-Cost % Related Terms
GAP vs VSXY, URBN, BOOT: 5-Year Yield-on-Cost % Comparison
For the Apparel Retail subindustry, Gap's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Gap's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Gap's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Gap (GAP) has a 5-Year Yield-on-Cost % of 3.66 as of Jul. 09, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Gap and its competitors. This is near median its historical median of 3.39. Over the past decade, Gap's 5-Year Yield-on-Cost % has ranged from 0.68 to 17.20. According to the industry distribution chart, Gap ranks #262 out of 582 companies in the Retail - Cyclical industry, placing it in the top 45%.
Is Gap's 5-Year Yield-on-Cost % too high?
Gap's current 5-Year Yield-on-Cost % of 3.66 is near median its 10-year median of 3.39. Over the past 10 years, this metric has ranged from a low of 0.68 to a high of 17.20. The Retail - Cyclical industry median 5-Year Yield-on-Cost % is 3.28. Gap's value of 3.66 is 11.8% above this industry median. Based on the distribution chart, Gap ranks #262 out of 582 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Gap has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Gap's 5-Year Yield-on-Cost % compare to VSXY and URBN?
According to the Retail - Cyclical industry distribution chart, Gap ranks #262 out of 582 companies for 5-Year Yield-on-Cost %. This puts Gap in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 3.28. Gap's value of 3.66 is 11.8% above this benchmark. Historically, Gap's own 5-Year Yield-on-Cost % has ranged from 0.68 to 17.20 over the past decade. While the company's 10-year median is 3.39 vs. the industry median of 3.28, Gap has consistently been above 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 5-Year Yield-on-Cost % for a Retail - Cyclical company?
The median 5-Year Yield-on-Cost % among Retail - Cyclical companies is 3.28, based on 582 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Gap's current 5-Year Yield-on-Cost % of 3.66 is 11.8% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Gap and its competitors. For the Retail - Cyclical industry, the median 5-Year Yield-on-Cost % is 3.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gap's current 5-Year Yield-on-Cost % is 3.66, which is near median its own 10-year median of 3.39. 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 $22.55, compared to a current price of $18.85 — trading 16.4% below its estimated fair value. The current 5-Year Yield-on-Cost % is 3.66, which is near median its 10-year median of 3.39 and 11.8% above the Retail - Cyclical industry median of 3.28. Gap's overall GF Score™ is 70/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Gap (GAP), the current 5-Year Yield-on-Cost % is 3.66 as of Jul. 09, 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 $18.85 is trading 16.4% below its estimated GF Value™ of $22.55.
GuruFocus considers Gap to be Modestly Undervalued.
Key valuation signals for GAP:
5-Year Yield-on-Cost %: 3.66 (near median its 10-year median of 3.39)
GF Value™: $22.55 vs. price of $18.85 (16.4% below fair value)
Industry Position: 11.8% above the Retail - Cyclical median (#262 of 582)
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.
70GF Score
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