Abercrombie & Fitch Co (ANF) is undervalued and Gap Inc (GAP) is undervalued.
Against our estimates of intrinsic value, GAP trades at the wider discount: a margin of safety of +49%, against +43% for ANF.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.1% (average of 3 methods) values the shares at $238.74; the price of $136.21 is 43% below that value, and 76% of that value comes from beyond year five.
Leak Score 100/100 on 3 of 12 signals
Discounting its cash flows at 10.1% (average of 3 methods) values the shares at $41.67; the price of $21.46 is 49% below that value, and 72% of that value comes from beyond year five.
Leak Score 100/100 on 3 of 12 signals
| Metric | ANF | GAP |
|---|---|---|
| Verdict | Undervalued | Undervalued |
| Price | $136.21 | $21.46 |
| Intrinsic value | $238.74 | $41.67 |
| Margin of safety | +43% | +49% |
| Leak Score | 100/100 (3/12) | 100/100 (3/12) |
| Market cap | $5.8B | $7.5B |
| Revenue growth, 5 years | 11.0% | 2.2% |
| Operating margin | 13.9% | 10.8% |
| Net margin | 10.0% | 8.1% |
| Return on equity | 40.5% | 33.8% |
| Debt to equity | 0.95 | 1.45 |
| P/E | 11.7x | 6.4x |
| Forward P/E | 10.5x | 8.1x |
| P/B | 4.3x | 1.9x |
| Dividend yield | — | 3.2% |