The Gap, Inc. operates as an apparel retail company worldwide. It offers apparel, accessories, and personal care products for men, women, and children under the Gap, Banana Republic, Old Navy, Athleta, and Intermix brands. The company was founded in 1969 and is based in San Francisco, California.
GPS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Gap Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Gap Inc ranked in the 3th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for GPS, they are:
Interest coverage, a measure of earnings relative to interest payments, is -10.8; that's higher than only 10.82% of US stocks in the Consumer Cyclical sector that have positive free cash flow.
Its compound free cash flow growth rate, as measured over the past 5.45 years, is -0.34% -- higher than merely 3.96% of stocks in our DCF forecasting set.
46% of the company's capital comes from equity, which is greater than merely 23.73% of stocks in our cash flow based forecasting set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Gap Inc? See AGS, CAKE, KMX, MOD, and BOMN.
Apparel retailer Gap Inc. (GPS) is planning to hire seasonal associates to support its Gap, Banana Republic, Athleta, Old Navy, Intermix and Janie and Jack stores, as well as customer contact centers and fulfilment centers during the 2020 holiday season.
Gap Inc said on Thursday it will virtually hire seasonal staff for the busy holiday months to help the apparel retailer fulfill online orders and man its customer contact centers as consumers shop heavily online due to the pandemic.
NEW DELHI: Gap Inc. and Arvind Fashions are parting ways, six years after the Bengaluru-based company signed a master franchisee for India and Arvind and US fashion group are currently looking for a buyer for Gap's India business.“We wish to inform that Arvind Lifestyle Brands Limited, a wholly owned subsidiary of Arvind Fashions Limited (AFL) and Gap Inc., have decided to mutually terminate their franchise business relationship in India,” Arvind Fashions told the Bombay Stock Exchange in a filing late on Tuesday.Arvind said in the filing that currently it, along with the US fashion company, is looking for a buyer for Gap franchisee in India.“As next steps, both companies will work out modalities regarding transition of the Gap business,” the filing further said. “Arvind Lifestyle Brand...
Latest CDP report reveals vast majority of top fashion firms are failing to adequately respond to investor concerns over water-related risks across their value chain The fashion industry has been accused of being "blind" to the risks of water pollution by a new report from investor-backed environmental disclosure platform CDP. The research, which has been released today in the run up to this year's London Fashion Week , reveals that only 10 per cent of listed fashion firms have demonstrated awareness of their impact on water pollution levels. CDP said the fashion and textile industry is responsible for substantial levels of water pollution at each stage of the supply chain, from agricultural runoff in cotton fields to the toxic chemicals used during the dying process and the microfibres...
Source: Barron's Gap (GPS) reported quarterly revenue of $3.28 billion and GAAP EPS of -$0.17. The company beat on revenue and earnings; Gap beat on revenue by $370 million, which was highly impressive given its dismal performance during the May quarter. I had the following takeaways on the quarter. Revenue...
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