GAP, INC (GAP)

Retail-Family Clothing Stores · Price $23.48
Updated: Aug 29, 2026
EPS (TTM)
$3.33
Diluted, Trailing 12 Months
P/E Ratio
7.1x
Price / EPS
Earnings Yield
14.18%
EPS / Price (Inverse P/E)
Growth Rate
14.95%
Log-Linear Regression (16Q)
PEG Ratio
0.16
P/E / Growth Rate

📐 Earnings Surprise (SUE): +1.03 — Positive Surprise

+1.03
−4−20+2+4
Strong missMissIn lineBeatStrong beat

Click for the full surprise history and what this signal means →

📈 EPS History (16 Quarters)

🧮 GAP EPS Calculation

EPS = Net Income ÷ Weighted Average Shares Outstanding
Net Income (TTM) $1.2B
÷
Diluted Shares Outstanding 355.0M
= Earnings Per Share (TTM) $3.33

What is Earnings Per Share (EPS)?

Earnings Per Share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock. It's one of the most important metrics for comparing profitability across companies and is the foundation of the P/E ratio, the most widely used valuation metric in finance.

EPS = Net Income ÷ Weighted Average Shares Outstanding
Diluted EPS accounts for all potential shares from stock options, convertible bonds, etc.

Why EPS Matters for Investors

Comparable Across Companies

EPS normalizes profit to a per-share basis, making it easy to compare companies of different sizes. A $10B company and a $100B company can be compared fairly.

Drives Stock Prices

Over the long term, stock prices follow earnings. EPS growth is the primary driver of share price appreciation for most stocks.

P/E Ratio Foundation

The P/E ratio (Price/EPS) is the most common valuation metric. A P/E of 20x means investors pay $20 for every $1 of annual earnings.

Earnings Yield

Earnings Yield (EPS/Price) is the inverse of P/E. Warren Buffett prefers this format because it can be directly compared to bond yields.

How Zyberno Calculates Growth Rate

Zyberno uses log-linear regression on 16 quarters of historical EPS data to calculate the growth rate. This statistical method provides a more reliable trend than simple year-over-year comparisons, which can be distorted by one-time charges or seasonal variations.

EPS vs Cash Flow Metrics

Owner Earnings: $1.2B →

Buffett's preferred metric focuses on actual cash generation. Unlike EPS, it excludes non-cash charges and accounting adjustments.

Free Cash Flow: $1.1B →

The cash remaining after capital expenditures. EPS can be positive while FCF is negative if the company is investing heavily.

Understanding P/E and PEG Ratios

GAP's current P/E ratio is 7.1x, meaning investors pay $7.05 for every $1 of annual earnings. A P/E below 15 is generally considered "value" territory.

The PEG ratio (P/E divided by growth rate) helps determine if a stock is fairly valued for its growth. GAP's PEG is 0.16. A PEG below 1.0 suggests the stock may be undervalued relative to its growth rate.

Summary: GAP Earnings Per Share

GAP, INC (GAP) earned $3.33 in diluted EPS over the trailing twelve months. EPS grew at 14.95% annually — above the 10% threshold Zyberno considers healthy growth above market averages. P/E ratio: 7.1x, earnings yield: 14.18%. For complete financial analysis, view the full GAP stock report on Zyberno.

Frequently Asked Questions

What is GAP's current EPS?

GAP, INC (GAP) earned $3.33 in diluted EPS over the trailing twelve months. EPS grew at 14.95% annually — above the 10% threshold Zyberno considers healthy growth above market averages. P/E ratio: 7.1x, earnings yield: 14.18%.

Is GAP's EPS growing?

GAP, INC (GAP) earned $3.33 in diluted EPS over the trailing twelve months. EPS grew at 14.95% annually — above the 10% threshold Zyberno considers healthy growth above market averages. P/E ratio: 7.1x, earnings yield: 14.18%.

What is GAP's P/E ratio?

GAP's P/E ratio is 7.1x, meaning investors pay $7.05 for every $1 of annual earnings. The inverse (Earnings Yield) is 14.18%.

What's the difference between EPS and Free Cash Flow?

EPS is accounting profit divided by shares, while Free Cash Flow is actual cash remaining after capital expenditures. For GAP, EPS is $3.33 compared to FCF of $1.1B.

📊 Valuation Trilogy
Three interconnected metrics built on Owner Earnings
💎
Intrinsic Value
DCF Fair Value
$74.90
🛡️
Margin of Safety
Valuation Gap
68.7%
🎯
Expected Return
Projected Annual
42.8%
Click any metric for full methodology and detailed analysis

📊 Full GAP Stock Report

See GAP's intrinsic value, margin of safety, DCF valuation, and complete financial analysis with 250+ metrics.

💵 GAP Free Cash Flow

Compare to Free Cash Flow which subtracts all capital expenditures, not just maintenance CapEx.

💰 GAP Owner Earnings

Compare to Buffett's Owner Earnings metric which uses maintenance CapEx instead of total capital expenditures.

📈 GAP Earnings Per Share

Analyze EPS trends, P/E ratio, earnings yield, and per-share profitability metrics.

🎯 GAP Earnings Surprise (SUE)

See whether GAP is beating or missing its own earnings trend — Standardized Unexpected Earnings and post-earnings drift.

📊 GAP Revenue

Analyze revenue trends, growth rate, P/S ratio, and top-line sales performance.

💰 GAP Net Income

Analyze the bottom-line profit, P/E ratio, and net profit margin trends.

🔶 GAP Operating Income

Analyze EBIT, operating margin, and core business profitability before interest and taxes.

💜 GAP Gross Profit

Analyze gross margin, pricing power, and profitability before operating expenses.

View Full GAP Report Find More Quality Stocks
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