|Company name||The Gap Inc.|
|Live stock price||[stckqut]GPS[/stckqut]|
|P/E compared to competitors||Good|
|Confident Investor Rating||Fair|
|Target stock price (TWCA growth scenario)||$37.3|
|Target stock price (averages with growth)||$49.49|
|Target stock price (averages with no growth)||$44.24|
|Target stock price (manual assumptions)||$140.62|
The following company description is from Google Finance: http://www.google.com/finance?q=gps
The Gap, Inc. (Gap Inc.) is a global specialty apparel company. Gap Inc. offers apparel, accessories, and personal care products for men, women, children, and babies under the Gap, Old Navy, Banana Republic, Piperlime, and Athleta brands. It operates in two segments: Stores, which includes the operations of the retail stores for Gap, Old Navy, and Banana Republic, and Direct, which includes the operations for its online brands, both domestic and international. It has Company-operated stores in the United States, Canada, the United Kingdom, France, Ireland, Japan, China, and Italy. It also has franchise agreements with unaffiliated franchisees to operate Gap and Banana Republic stores throughout Asia, Australia, Eastern Europe, Latin America, the Middle East, and Africa. As of January 28, 2012, the Company had 3,263 store locations, of which 3,036 stores were Company-operated and 227 stores were franchise store locations. In March 2012, the Company opened its store in South Africa.
Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in The Gap Inc. as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
Stock price at the time of the calculation: $38.98
Current EPS (TTM): $2.8
Future EPS Calc: $4.71
Future Stock Price Calc: $226.47
Target stock price: $140.62
I hope that this makes you a better investor. [/s2If]