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Gap (LTS:0ITS) Cyclically Adjusted PS Ratio : 0.45 (As of May. 17, 2024)


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What is Gap Cyclically Adjusted PS Ratio?

As of today (2024-05-17), Gap's current share price is $21.80. Gap's Cyclically Adjusted Revenue per Share for the quarter that ended in Jan. 2024 was $48.41. Gap's Cyclically Adjusted PS Ratio for today is 0.45.

The historical rank and industry rank for Gap's Cyclically Adjusted PS Ratio or its related term are showing as below:

LTS:0ITS' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 0.15   Med: 0.74   Max: 1.91
Current: 0.45

During the past years, Gap's highest Cyclically Adjusted PS Ratio was 1.91. The lowest was 0.15. And the median was 0.74.

LTS:0ITS's Cyclically Adjusted PS Ratio is ranked better than
51.91% of 761 companies
in the Retail - Cyclical industry
Industry Median: 0.48 vs LTS:0ITS: 0.45

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

Gap's adjusted revenue per share data for the three months ended in Jan. 2024 was $11.164. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is $48.41 for the trailing ten years ended in Jan. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Gap Cyclically Adjusted PS Ratio Historical Data

The historical data trend for Gap's Cyclically Adjusted PS 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 Cyclically Adjusted PS Ratio Chart

Gap Annual Data
Trend Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.71 0.45 0.50 0.41 0.29

Gap Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Cyclically Adjusted PS 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 0.29 0.20 0.22 0.27 0.39

Competitive Comparison of Gap's Cyclically Adjusted PS Ratio

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

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

* The bar in red indicates where Gap's Cyclically Adjusted PS Ratio falls into.



Gap Cyclically Adjusted PS Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PS Ratio takes the Revenue per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/S calculation. Because it considers this 10-year average, it's often referred to as the CAPS Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio.

Gap's Cyclically Adjusted PS Ratio for today is calculated as

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=21.80/48.41
=0.45

* 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 Cyclically Adjusted Revenue per Share for the quarter that ended in Jan. 2024 is calculated as:

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

Adj_RevenuePerShare=Revenue per Share/CPI of Jan. 2024 (Change)*Current CPI (Jan. 2024)
=11.164/130.1244*130.1244
=11.164

Current CPI (Jan. 2024) = 130.1244.

Gap Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201404 8.368 100.023 10.886
201407 8.986 100.520 11.632
201410 9.089 100.176 11.806
201501 11.000 98.604 14.516
201504 8.625 99.824 11.243
201507 9.325 100.691 12.051
201510 9.453 100.346 12.258
201601 10.935 99.957 14.235
201604 8.617 100.947 11.108
201607 9.652 101.524 12.371
201610 9.495 101.988 12.114
201701 11.017 102.456 13.992
201704 8.600 103.167 10.847
201707 9.593 103.278 12.087
201710 9.766 104.070 12.211
201801 12.158 104.578 15.128
201804 9.626 105.708 11.849
201807 10.474 106.324 12.819
201810 10.566 106.695 12.886
201901 12.102 106.200 14.828
201904 9.727 107.818 11.739
201907 10.567 108.250 12.702
201910 10.633 108.577 12.743
202001 12.464 108.841 14.901
202004 5.664 108.173 6.813
202007 8.757 109.318 10.424
202010 10.511 109.861 12.450
202101 11.735 110.364 13.836
202104 10.366 112.673 11.972
202107 10.909 115.183 12.324
202110 10.487 116.696 11.694
202201 12.003 118.619 13.167
202204 9.397 121.978 10.025
202207 10.510 125.002 10.941
202210 11.036 125.734 11.421
202301 11.561 126.223 11.918
202304 8.926 127.992 9.075
202307 9.563 128.974 9.648
202310 10.045 129.810 10.069
202401 11.164 130.124 11.164

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue per Share.

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  (LTS:0ITS) Cyclically Adjusted PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PS Ratio should give similar results to regular PS Ratio.


Gap Cyclically Adjusted PS Ratio Related Terms

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


Gap (LTS:0ITS) 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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