Gap Inc
XMUN:GAP
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EV/EBIT
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBIT returns to its 3-Year Average (10.1), the stock would be worth €22.35 (0% downside from current price).
| Scenario | EV/EBIT Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 10.1 | €22.35 |
0%
|
| 3-Year Average | 10.1 | €22.35 |
0%
|
| 5-Year Average | 10.1 | €22.35 |
0%
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| Industry Average | 18.7 | €41.53 |
+86%
|
| Country Average | 19.6 | €43.57 |
+95%
|
Forward EV/EBIT
Today’s price vs future ebit
| Today's Enterprise Value | EBIT | Forward EV/EBIT | ||
|---|---|---|---|---|
|
€7.9B
|
/ |
May 2024
$782m
|
= |
|
|
€7.9B
|
/ |
Mar 2025
$928.4m
|
= |
|
|
€7.9B
|
/ |
Mar 2026
$1B
|
= |
|
|
€7.9B
|
/ |
Mar 2027
$1.1B
|
= |
|
Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.
Peer Comparison
| Market Cap | EV/EBIT | P/E | ||||
|---|---|---|---|---|---|---|
| US |
|
Gap Inc
XMUN:GAP
|
8.1B EUR | 10.1 | 12 | |
| ES |
|
Industria de Diseno Textil SA
MAD:ITX
|
166.4B EUR | 20.1 | 27.1 | |
| US |
|
TJX Companies Inc
NYSE:TJX
|
178.9B USD | 24.3 | 32.6 | |
| JP |
|
Fast Retailing Co Ltd
TSE:9983
|
23.2T JPY | 35.4 | 51.7 | |
| ZA |
P
|
Pepkor Holdings Ltd
JSE:PPH
|
85.7B ZAR | 9.3 | 15.2 | |
| US |
|
Ross Stores Inc
NASDAQ:ROST
|
71.3B USD | 25 | 33.2 | |
| ZA |
M
|
Mr Price Group Ltd
JSE:MRP
|
41.8B ZAR | 7.7 | 11.2 | |
| SE |
|
H & M Hennes & Mauritz AB
STO:HM B
|
279.9B SEK | 17 | 22.8 | |
| ZA |
F
|
Foschini Group Ltd
JSE:TFG
|
23B ZAR | 9.2 | 7.8 | |
| ZA |
T
|
Truworths International Ltd
JSE:TRU
|
21.6B ZAR | 8.1 | 7.7 | |
| US |
|
Burlington Stores Inc
NYSE:BURL
|
20.9B USD | 25.7 | 34.3 |
Market Distribution
| Min | 0 |
| 30th Percentile | 13.6 |
| Median | 19.6 |
| 70th Percentile | 27.8 |
| Max | 1 826 183.2 |
Other Multiples
Gap Inc
Glance View
Gap Inc., a veritable icon in the landscape of American retail, has navigated the ever-evolving world of fashion with a blend of nostalgia and innovation. Founded in 1969 by Donald and Doris Fisher in San Francisco, the company emerged during a time when reliable, affordable denim was hard to find—a gap, if you will, in the market that they keenly leveraged. Today, Gap Inc. stands as a conglomerate, maintaining a diverse portfolio of brands, including Old Navy, Banana Republic, Athleta, and of course, its namesake Gap stores. Each brand caters to distinct demographics, allowing Gap Inc. to capture a wide customer base ranging from the budget-conscious, fashion-forward youth to the more mature, professional, and health-oriented consumers. The essence of Gap Inc.'s business model lies in its ability to marry robust supply chain logistics with a high-street retail presence, supplemented by a dynamic e-commerce strategy. The company generates revenue through the direct sale of clothing, accessories, and personal care products across its various labels. Beyond traditional brick-and-mortar stores, Gap Inc. has invested heavily in optimizing its online platforms to adapt to shifting consumer behaviors, especially in the wake of the digital shopping era. This dual-channel approach enhances customer engagement and expands reach across geographic and demographic boundaries. By balancing brand revitalization efforts with strategic pricing and inventory management, Gap Inc. strives to maintain its status as a stalwart in the global fashion industry while continuing to pursue avenues for growth and differentiation in a competitive market.