Gap Trades at Low P/E Multiple: Is it the Right Time to Buy the Stock?

The Gap Inc.’s (GAP) current valuation suggests that the stock is available at a discounted price compared with the industry average. The GAP stock trades at a forward 12-month price-to-earnings (P/E) ratio of 10.9X, significantly lower than the Zacks Retail – Apparel and Shoes industry average of 18.91X. Similarly, the forward 12-month price-to-sales (P/S) ratio of 0.58X is substantially lower than the industry average of 1.78X.The stock also trades at a discount to its peers, including Abercrombie & Fitch ...