Gap Inc (GAP) is undervalued and TJX Companies Inc (TJX) is overvalued.
Against our estimates of intrinsic value, GAP trades at the wider discount: a margin of safety of +49%, against -56% for TJX.
Values as of the 22 Sept 2026 close.
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
Discounting its cash flows at 8.4% (average of 3 methods) values the shares at $83.94; the price of $130.79 is 56% above that value, and 78% of that value comes from beyond year five.
Leak Score 62/100 on 10 of 12 signals
| Metric | GAP | TJX |
|---|---|---|
| Verdict | Undervalued | Overvalued |
| Price | $21.46 | $130.79 |
| Intrinsic value | $41.67 | $83.94 |
| Margin of safety | +49% | -56% |
| Leak Score | 100/100 (3/12) | 62/100 (10/12) |
| Market cap | $7.5B | $143.9B |
| Revenue growth, 5 years | 2.2% | 13.4% |
| Operating margin | 10.8% | 12.4% |
| Net margin | 8.1% | 9.7% |
| Return on equity | 33.8% | 62.2% |
| Debt to equity | 1.45 | 1.34 |
| P/E | 6.4x | 24.2x |
| Forward P/E | 8.1x | 22.6x |
| P/B | 1.9x | 13.5x |
| Dividend yield | 3.2% | 1.4% |