GameStop Stock Valuation

GME
 Stock
  

USD 27.52  0.92  3.46%   

What is the value of GameStop Corp today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as GameStop Corp, is its stock price multiplied by the total number of shares outstanding, calculating GameStop Corp's enterprise value requires a different approach. It uses GameStop Corp's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
The current year Free Cash Flow is expected to grow to about (92.3 M). In addition to that, Enterprise Value is expected to decline to about 5.5 B.
GameStop Corp retains a regular Real Value of $33.32 per share. The prevalent price of the firm is $27.52. At this time, the firm appears to be undervalued. Our model calculates the value of GameStop Corp from evaluating the firm fundamentals such as Return On Asset of (0.09) %, current valuation of 8.07 B, and Return On Equity of (0.33) % as well as inspecting its technical indicators and Probability Of Bankruptcy. In general, we encourage purchasing undervalued assets and exiting overvalued assets since, at some point, asset prices and their ongoing real values will come together.
  
GameStop Corp Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as GameStop Corp's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

GameStop Most Recent Valuation Data

Beta
(0.35) 
change Receivables
-38.4 M
Fiscal Year End
January
property Plant And Equipment Net
750.2 M
Enterprise Value
8.1 B
current Deferred Revenue
389.8 M
Undervalued
Today 27.52
Please note that GameStop Corp's price fluctuation is not too volatile at this time. Calculation of the real value of GameStop Corp is based on 3 months time horizon. Increasing GameStop Corp's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for GameStop Corp is useful when determining the fair value of the GameStop stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of GameStop Corp. Since GameStop Corp is currently traded on the exchange, buyers and sellers on that exchange determine the market value of GameStop Stock. However, GameStop Corp's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
33.32
Real Value
37.81
Upside
Estimating the potential upside or downside of GameStop Corp helps investors to forecast how GameStop stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of GameStop Corp more accurately as focusing exclusively on GameStop Corp's fundamentals will not take into account other important factors:
Earnings
Estimates (2)
LowProjected EPSHigh
-2.32-1.77-1.22
Details
Hype
Prediction
LowEstimated ValueHigh
22.8027.2931.78
Details
4 Analysts
Consensus
LowTarget PriceHigh
10.0055.75145.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use GameStop Corp's intrinsic value based on its ongoing forecasts of GameStop Corp's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against GameStop Corp's closest peers. When choosing an evaluation method for GameStop Corp, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

GameStop Corp Investments

18.76 Million

GameStop Valuation Drivers Correlation

Many accounts on the financial statements of GameStop Corp are highly interrelated and sometimes correlated. Consequently, when conducting GameStop's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of GameStop
Click cells to compare fundamentals

GameStop Valuation Trend

Knowing GameStop Corp's actual value is paramount for traders to make sound investment determinations. GameStop Corp's real value is not only important for the investor to make better decisions but also for a more accurate overall view of GameStop Corp's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both GameStop Corp's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

GameStop Market Cap

GameStop Corp is rated # 5 in market capitalization category among related companies. Market capitalization of Consumer Discretionary industry is currently estimated at about 108.04 Billion. GameStop Corp holds roughly 8.38 Billion in market capitalization claiming about 8% of stocks in Consumer Discretionary industry.
Capitalization  Workforce  Revenue  Valuation  Total debt

GameStop Corp Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining GameStop Corp's current stock value. Our valuation model uses many indicators to compare GameStop Corp value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across GameStop Corp competition to find correlations between indicators driving GameStop Corp's intrinsic value. More Info.
GameStop Corp is rated # 3 in price to book category among related companies. It is one of the top stocks in price to earning category among related companies reporting about  60.18  of Price to Earning per Price to Book. GameStop Corp Earnings before Tax are projected to decrease significantly based on the last few years of reporting. The past year's Earnings before Tax were at (395.4 Million). Comparative valuation analysis is a catch-all model that can be used if you cannot value GameStop Corp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for GameStop Corp's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the GameStop Corp's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates GameStop Corp's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in GameStop Corp and how it compares across the competition.

About GameStop Corp Valuation

The stock valuation mechanism determines the current worth of GameStop Corp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of GameStop Corp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of GameStop Corp based exclusively on its fundamental and basic technical indicators. By analyzing GameStop Corp's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of GameStop Corp's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of GameStop Corp. We calculate exposure to GameStop Corp's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to GameStop Corp's related companies.
Fiscal Year End
January
Industry
Specialty Retail
Concentration
Computer & Electronics Retail
Full Time Employees
12 K
Service Category
Specialty Retail
Employer Id Number
20-2733559
Last ReportedProjected for 2022
Gross Profit1.3 B2.2 B
Profit Margin(6.34) (1.08) 

GameStop Corp Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as GameStop Corp does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quarterly Earnings Growth Y O Y2.689

GameStop Corp Current Valuation Indicators

Valuation refers to the process of determining the present value of GameStop Corp and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value GameStop we look at many different elements of the entity such as GameStop's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. GameStop Corp's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final GameStop Corp's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as GameStop Corp, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use GameStop Corp's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes GameStop Corp's worth.
Please check Risk vs Return Analysis. You can also try Commodity Channel Index module to use Commodity Channel Index to analyze current equity momentum.

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When running GameStop Corp price analysis, check to measure GameStop Corp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy GameStop Corp is operating at the current time. Most of GameStop Corp's value examination focuses on studying past and present price action to predict the probability of GameStop Corp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move GameStop Corp's price. Additionally, you may evaluate how the addition of GameStop Corp to your portfolios can decrease your overall portfolio volatility.
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Is GameStop Corp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of GameStop Corp. If investors know GameStop will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about GameStop Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
2.69
Market Capitalization
8.4 B
Quarterly Revenue Growth YOY
(0.04) 
Return On Assets
(0.09) 
Return On Equity
(0.33) 
The market value of GameStop Corp is measured differently than its book value, which is the value of GameStop that is recorded on the company's balance sheet. Investors also form their own opinion of GameStop Corp's value that differs from its market value or its book value, called intrinsic value, which is GameStop Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because GameStop Corp's market value can be influenced by many factors that don't directly affect GameStop Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between GameStop Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine GameStop Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, GameStop Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.