Why We Lowered Our Price Estimate For Gap Inc By 30%
- Gap Inc’s shares have been on a down-slide for the last one-and-a-half months following the release of its April sales results.
- We have lowered our price estimate for Gap by 30% by pulling back its revenue forecast and the terminal growth rate.
- The company recently announced that it plans to close 53 Old Navy stores in Japan and correspondingly, we’ve lowered the forecast for its store count.
- We have also reduced the terminal growth rate for the company from 1% to 0.1%, considering that we forecast Gap Inc’s free cash flow to decline until 2022. Morever, any recovery thereafter is likely to be marginal.
Have more questions about Gap Inc? See the links below:
- What’s Gap Inc’s Revenue & Net Income Breakdown In Terms Of Different Brands?
- By How Much Did Gap Inc’s Revenue & EBITDA Grow In The Last Five Years?
- What Is Gap Inc’s Fundamental Value Based On Expected 2016 Results?
- By What Percentage Can Gap Inc’s Revenues Grow Over The Next Three Years?
- How Are Gap Inc’s Old Navy Revenues & Earnings Expected To Grow Over The Next Five Years?
- How Are Gap Inc’s Banana Republic Revenues & Earnings Expected To Grow Over The Next Five Years?
- How Much Revenues Can Gap Inc’s Athleta Brand Add By 2020?
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