The Gap - Comparative Multiple Analysis

The Gap (Comparative Multiple Analysis)

Home Comparative Index The Gap

►Summary | Profile | News | Chart | SWOT | Cash Flow | Comps | Buffett | WACC

Link to services page

placeholder_large_analysis.png

Improve your investment analysis with by seeing the The Gap's Discounted Cash Flow analysis, The Gap's Warren Buffet analysis, and The Gap's Weighted Average Cost of Capital (WACC) Analysis.

Notes on the Comparative Multiple Analysis of The Gap

WikiWealth compares The Gap's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with The Gap's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for The Gap.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to The Gap's debt holders.
3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples.
4. WikiWealth excludes outliers when calculating individual company multiples.

Helpful Information for The Gap's Analysis


How does this work? The Comparative Investment Analysis determines the value of The Gap by comparing The Gap financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.

Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of The Gap.

See the The Gap cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in The Gap.

Also, see the The Gap's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and The Gap's valuation conclusion for a quick summary.