Burlington Stores Inc (BURL) is overvalued 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 -40% for BURL.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.9% (average of 3 methods) values the shares at $183.28; the price of $256.85 is 40% above that value, and 74% of that value comes from beyond year five.
Leak Score 14/100 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 | BURL | GAP |
|---|---|---|
| Verdict | Overvalued | Undervalued |
| Price | $256.85 | $21.46 |
| Intrinsic value | $183.28 | $41.67 |
| Margin of safety | -40% | +49% |
| Leak Score | 14/100 (3/12) | 100/100 (3/12) |
| Market cap | $16.1B | $7.5B |
| Revenue growth, 5 years | 14.9% | 2.2% |
| Operating margin | 8.2% | 10.8% |
| Net margin | 5.8% | 8.1% |
| Return on equity | 41.4% | 33.8% |
| Debt to equity | 2.95 | 1.45 |
| P/E | 23.0x | 6.4x |
| Forward P/E | 18.8x | 8.1x |
| P/B | 8.1x | 1.9x |
| Dividend yield | — | 3.2% |