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Gap (FRA:GAP) Shiller PE Ratio : 13.83 (As of May. 02, 2024)


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What is Gap Shiller PE Ratio?

As of today (2024-05-02), Gap's current share price is €19.496. Gap's E10 for the quarter that ended in Jan. 2024 was €1.41. Gap's Shiller PE Ratio for today is 13.83.

The historical rank and industry rank for Gap's Shiller PE Ratio or its related term are showing as below:

FRA:GAP' s Shiller PE Ratio Range Over the Past 10 Years
Min: 2.48   Med: 11.97   Max: 27.73
Current: 13.22

During the past years, Gap's highest Shiller PE Ratio was 27.73. The lowest was 2.48. And the median was 11.97.

FRA:GAP's Shiller PE Ratio is ranked better than
62.81% of 562 companies
in the Retail - Cyclical industry
Industry Median: 17.135 vs FRA:GAP: 13.22

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Gap's adjusted earnings per share data for the three months ended in Jan. 2024 was €0.450. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is €1.41 for the trailing ten years ended in Jan. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Gap Shiller PE Ratio Historical Data

The historical data trend for Gap's Shiller PE 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 Shiller PE Ratio Chart

Gap Annual Data
Trend Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23
Shiller PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.95 7.63 10.64 9.41 8.05

Gap Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Shiller PE 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 8.05 5.96 6.55 8.28 12.46

Competitive Comparison of Gap's Shiller PE Ratio

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

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

* The bar in red indicates where Gap's Shiller PE Ratio falls into.



Gap Shiller PE Ratio Calculation

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Gap's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=19.496/1.41
=13.83

* 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 E10 for the quarter that ended in Jan. 2024 is calculated as:

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

Adj_EPS=Earnings per Share (Diluted)/CPI of Jan. 2024 (Change)*Current CPI (Jan. 2024)
=0.45/129.4194*129.4194
=0.450

Current CPI (Jan. 2024) = 129.4194.

Gap Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201404 0.420 100.023 0.543
201407 0.554 100.520 0.713
201410 0.631 100.176 0.815
201501 0.646 98.604 0.848
201504 0.517 99.824 0.670
201507 0.473 100.691 0.608
201510 0.544 100.346 0.702
201601 0.488 99.957 0.632
201604 0.282 100.947 0.362
201607 0.281 101.524 0.358
201610 0.463 101.988 0.588
201701 0.517 102.456 0.653
201704 0.336 103.167 0.421
201707 0.590 103.278 0.739
201710 0.494 104.070 0.614
201801 0.426 104.578 0.527
201804 0.342 105.708 0.419
201807 0.651 106.324 0.792
201810 0.600 106.695 0.728
201901 0.631 106.200 0.769
201904 0.534 107.818 0.641
201907 0.392 108.250 0.469
201910 0.334 108.577 0.398
202001 -0.441 108.841 -0.524
202004 -2.309 108.173 -2.763
202007 -0.148 109.318 -0.175
202010 0.213 109.861 0.251
202101 0.501 110.364 0.588
202104 0.359 112.673 0.412
202107 0.567 115.183 0.637
202110 -0.345 116.696 -0.383
202201 -0.035 118.619 -0.038
202204 -0.407 121.978 -0.432
202207 -0.128 125.002 -0.133
202210 0.782 125.734 0.805
202301 -0.696 126.223 -0.714
202304 -0.046 127.992 -0.047
202307 0.289 128.974 0.290
202310 0.549 129.810 0.547
202401 0.450 129.419 0.450

Add all the adjusted EPS together and divide 10 will get our E10.

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  (FRA:GAP) Shiller PE Ratio Explanation

Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.

Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.


Be Aware

Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.


Gap Shiller PE Ratio Related Terms

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


Gap (FRA:GAP) 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.

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