GME — GameStop Corp.
Snapshot dated October 7, 2026.
GameStop Corp. operates as a specialty retailer of video games, pop culture collectibles, and consumer electronics, primarily through its brick-and-mortar storefronts and digital platforms. The company segments its revenue streams into three primary categories: hardware and accessories, software, and collectibles, which includes apparel and merchandise. It serves a broad customer base of gamers and hobbyists, maintaining a global retail footprint across North America, Europe, and Australia. In the video game retail space, GameStop acts as a prominent legacy physical retailer, competing against digital distribution platforms like the PlayStation Store, Xbox Games Store, and Steam, as well as general merchandise retailers. Recent years have seen the company focus on cost-cutting measures, including the closure of underperforming stores and a strategic shift to reduce corporate overhead. It continues to pivot toward a mix of high-margin collectibles and hardware while attempting to maintain its physical presence in a gaming market that is increasingly shifting toward cloud gaming and direct digital downloads.
Fair Value / Share
$9.93
Price on October 7, 2026
$24.62
Upside to fair value
-59.68%
Data by Equibles and SEC filings. Figures are as of October 7, 2026 and are not live.
Earnings Yield
Earnings Yield shows how much profit a company generates relative to its share price. EPS ÷ Stock Price.
Stock Price
$24.62
Market Cap
$14,589,812,000
Net Income (TTM)
$893,300,000
Diluted Shares
592.6 million
EPS (TTM)
$1.51
Earnings Yield
6.12%
6.1% vs ~4-5% bonds · Specialty Retail median 5.1% (19 companies, excl. GME)
Show the 19 companies behind the medianHide the companies behind the median
| Company | Net income (TTM) | Market cap | Earnings yield |
|---|---|---|---|
| WSMWilliams Sonoma Inc | $1.2B | $27.3B | 4.3% |
| ULTAUlta Beauty, Inc. | $1.2B | $23.3B | 5.2% |
| CASYCaseys General Stores Inc | $772.8M | $22.2B | 3.5% |
| BBYBest Buy Co Inc | $1.3B | $18.6B | 6.8% |
| TSCOTractor Supply Co | $1.9B | $16.8B | 11.2% |
| FIVEFive Below, Inc | $619.2M | $12.3B | 5.1% |
| DKSDick's Sporting Goods, Inc. | $838.8M | $12B | 7.0% |
| MUSAMurphy USA Inc. | $617.2M | $9.4B | 6.6% |
| BBWIBath & Body Works, Inc. | $781M | $3.2B | 24.2% |
| ASOAcademy Sports & Outdoors, Inc. | $395.9M | $3B | 13.3% |
| RHRh | $111.5M | $2.4B | 4.7% |
| SBHSally Beauty Holdings, Inc. | $192.3M | $1.6B | 12.0% |
| SVVSavers Value Village, Inc. | $24.8M | $1.4B | 1.7% |
| ARHSArhaus, Inc. | $69.2M | $1.3B | 5.1% |
| EYENational Vision Holdings, Inc. | $50.3M | $1.3B | 3.8% |
| HZOMarinemax Inc | $4.1M | $1.2B | 0.4% |
| WOOFPetco Health & Wellness Company, Inc. | $30.3M | $736M | 4.1% |
| ARKOARKO Corp. | $14.8M | $465M | 3.2% |
| BNEDBarnes & Noble Education, Inc. | $22.2M | $394.5M | 5.6% |
Peer yields are net income ÷ market cap from the Equibles screener, as of 2026-10-07; GME's own figure is EPS ÷ price from SEC filings, so small gaps between the two methods are expected. Data by Equibles.
AI Analysis
GameStop's earnings yield is 6.12%, derived from an EPS of $1.51 and a stock price of $24.62. This figure sits higher than the 4-5% return available from safe alternatives like bonds. This yield is close to the Specialty Retail industry median of 5.13%. A yield above the bond benchmark implies that the current share price attributes less value to each dollar of existing earnings compared to lower-yielding assets, suggesting the market is not pricing in substantial near-term earnings growth. The yield would increase if the share price were to decline or if the company's annual net income rose. This measure does not account for the company's future growth trajectory, cash position, or potential changes in its business model.
Return on Capital
EBIT ÷ (Net Working Capital + Net Fixed Assets) — how efficiently the business turns capital into profit.
EBIT (TTM)
$480,000,000
Net Working Capital
$391,600,000
Net Fixed Assets
$50,100,000
Invested Capital
$441,700,000
Return on Capital
108.67%
108.67% ROC · 2/2: above the 15% floor, above the Specialty Retail median of 38.6% (18 companies, excl. GME)
Show the 19 companies behind the medianHide the companies behind the median
| Company | EBIT (TTM) | Invested capital | ROC |
|---|---|---|---|
| WSMWilliams Sonoma Inc | $1.5B | $940.7M | 163.4% |
| ULTAUlta Beauty, Inc. | $1.6B | $2.4B | 67.8% |
| CASYCaseys General Stores IncNo operating income could be established from its filings. | — | $5.5B | Skipped |
| BBYBest Buy Co Inc | $1.7B | $780M | 219.2% |
| TSCOTractor Supply Co | $1.3B | $4.1B | 33.0% |
| FIVEFive Below, Inc | $783.8M | $1.9B | 40.8% |
| DKSDick's Sporting Goods, Inc. | $1.2B | $5.5B | 21.4% |
| MUSAMurphy USA Inc. | $921.4M | $2.8B | 33.0% |
| BBWIBath & Body Works, Inc. | $1.2B | $903M | 133.6% |
| ASOAcademy Sports & Outdoors, Inc. | $591.6M | $1.2B | 48.6% |
| RHRh | $344.3M | $2.6B | 13.1% |
| SBHSally Beauty Holdings, Inc. | $314.2M | $863.4M | 36.4% |
| SVVSavers Value Village, Inc. | $134.4M | $232.9M | 57.7% |
| ARHSArhaus, Inc. | $93.1M | $263.8M | 35.3% |
| EYENational Vision Holdings, Inc. | $82.8M | $161.1M | 51.4% |
| HZOMarinemax Inc | $66.8M | $1.2B | 5.5% |
| WOOFPetco Health & Wellness Company, Inc. | $133.5M | $223.5M | 59.7% |
| ARKOARKO Corp. | $97.8M | $816.6M | 12.0% |
| BNEDBarnes & Noble Education, Inc. | $42.4M | $262.6M | 16.2% |
The same companies as the earnings yield comparison, each measured with GME's own formula — EBIT ÷ (net working capital + net fixed assets) — from its latest SEC filings. Capital-free companies rank above every percentage; skipped companies are not in the median. Data by Equibles and SEC filings.
AI Analysis
GameStop Corp. generated an EBIT of $480M on invested capital of $441.7M, resulting in a return on capital of 108.67%. This figure meets both checks in the Return on Capital framework: it sits above the 15% floor, and it is above the Specialty Retail median of 38.6%. Consequently, the verdict for this business is strong. This measure effectively captures how much operating profit is generated for every dollar of tangible capital tied up in the business. However, this framework does not account for changes in capital intensity over time; a business in a heavy expansion phase or one transitioning its operational footprint might see its return on capital fluctuate due to large, non-recurring investments in infrastructure rather than inherent inefficiency. Sustained results depend on the company's ability to maintain high operating profitability while keeping its net working capital and fixed asset requirements low.
Acquirer's Multiple
Enterprise Value ÷ Operating Earnings — how many years of operating earnings it would take to buy the whole business.
| Company | Operating earnings | Enterprise value | Multiple |
|---|---|---|---|
| BBYBest Buy Co Inc | $1.7B | $17.1B | 10.0x |
| TGTTarget Corp | $6B | $80B | 13.3x |
| GMEGameStop Corp. | $480M | $13.9B | 29.0x |
Where GME sits: 29.0x against a peer median of 11.6x (peers: 10.0x and 13.3x) — 149.0% above the median.
Show the enterprise value bridge for each companyHide the enterprise value bridge
GME
Debt $4.2B. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. The company separately reports $165.4M of operating lease liabilities as of 2026-08-01 ($85.7M non-current, $79.7M current). These are excluded from debt because operating lease cost already sits inside operating earnings — counting the liability again as debt would charge the business twice for the same thing.
BBY
Named as a competitor: competates directly in physical retail sales of gaming hardware, software, and consumer electronics
Debt $1.2B. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. The company separately reports $3B of operating lease liabilities as of 2026-08-01 ($2.4B non-current, $614M current). These are excluded from debt because operating lease cost already sits inside operating earnings — counting the liability again as debt would charge the business twice for the same thing.
TGT
Named as a competitor: competes in brick-and-mortar and online retail distribution of gaming consoles and physical video games
Debt $15.4B. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. The company separately reports $3.3B of operating lease liabilities as of 2026-08-01. These are excluded from debt because operating lease cost already sits inside operating earnings — counting the liability again as debt would charge the business twice for the same thing.
Operating earnings — GME
AI Analysis
The Acquirer's Multiple for GME is 29.0x, derived from an enterprise value of $13.9B and TTM operating earnings of $480M. Among the competitors, BBY shows a multiple of 10.0x, based on an enterprise value of $17.1B and operating earnings of $1.7B, while TGT has a multiple of 13.3x, resulting from an enterprise value of $80B and operating earnings of $6B. Consequently, BBY holds the lowest multiple and GME holds the highest. The computed comparison places GME at 29.0x against a peer median of 11.6x (peers: 10.0x and 13.3x) — 149.0% above the median. The gap between these figures could narrow if GME were to increase its TTM operating earnings or if its enterprise value were to decrease relative to these profits. This measure does not capture differences in capital intensity or debt structure, which can cause the multiple to vary significantly even between similar business models.
FS-Score
A 10-check read on financial health, across profitability, balance-sheet stability and operating momentum.
FS-Score
7/10
Decent score — worth a deeper look before investing.
Section 1
Current Profitability
3/3
This section is Strong, with the company recording positive returns on assets and generating cash flows that exceed reported net income.
- Return on assets is positive at 4.03%.
- Free cash flow to total assets is positive at 5.75%.
- Accruals ratio of 1.47 shows that cash flow from operations is higher than net income.
A decline in cash generation or a shift to a net loss would lower this score, whereas currently it indicates earnings are backed by realized cash.
Return on Assets (ROA > 0)
PassFree Cash Flow to Total Assets (FCFTA > 0)
PassAccruals (CFO / Net Income > 1)
PassSection 2
Stability
1/3
The stability profile is Weak, primarily due to an increase in long-term debt and a significant rise in the share count over the last year.
- Leverage increased to 0.4 from a prior level of 0.
- Liquidity improved significantly, with the current ratio rising from 8.05 to 15.3.
- Net dilution occurred as diluted shares outstanding rose to 549.1 million from 394.7 million.
This score would improve if the company halted share issuance or reduced its long-term debt relative to its total assets.
Change in Leverage (↓ or unchanged)
FailChange in Liquidity (↑ Current Ratio)
PassNet Dilution (annual diluted weighted-average shares, this year vs last)
FailSection 3
Recent Operational Improvements
3/4
Operational trends are Strong, characterized by rising margins and improving returns on assets despite a slowdown in how efficiently assets generate sales.
- Return on assets improved year over year from 2.23% to 4.03%.
- Free cash flow to total assets rose from 2.21% to 5.75%.
- Gross margin increased to 32.95% from 29.14%.
- Asset turnover fell to 0.35 from 0.65 a year ago.
The score reflects gains in profitability and cash efficiency, though the drop in asset turnover suggests a decrease in revenue relative to the asset base.
Change in ROA (↑)
PassChange in FCFTA (↑)
PassChange in Gross Margin (↑)
PassChange in Asset Turnover (↑)
FailFramework conclusion
The company earns a total score of 7/10, which indicates a solid but mixed financial position. Strong current profitability and operational improvements are offset by weaknesses in the stability of the balance sheet, specifically regarding dilution and leverage. This score suggests that while the business is showing internal signs of recovery, the structural health of the capital base has shifted due to recent financing activities.
- Gross margin improved to 32.95% from 29.14% year over year.
- Current ratio increased to 15.3, indicating higher immediate liquidity.
- Diluted shares outstanding rose to 549.1 million, signaling shareholder dilution.
- Asset turnover decreased to 0.35 from 0.65.
Intrinsic Value (DCF)
A 10-year discounted cash flow, then the bridge from business value to value per share.
Reported cash flow → unlevered free cash flow
Free Cash Flow (reported)
$688M
+ After-Tax Interest Expense
$39.7M
= Unlevered Free Cash Flow
$727.7M
Business value (10-year DCF)
PV of Years 1–10
$3.7B
PV of Terminal Value
$1.5B
= Business Value
$5.2B
Terminal value share
29.71%
Business value → share value
Intrinsic Value (business)
$5.2B
+ Cash & Equivalents
$4.9B
− Debt
$4.2B
= Shareholders' Value
$5.9B
÷ Diluted Shares
592.6 million
= Fair Value / Share
$9.93
Divided by 592.6 million diluted shares — the weighted-average diluted count from the most recent quarterly income statement, for the quarter ended 2026-08-01.
Risk bucket → discount rate
high (15%)
Year-1 FCF
$727.7M
Trailing twelve months.
FY2024 -$238.6M · FY2025 $129.6M · FY2026 $597.3M
Growth rate (yrs 1–10)
0%
Terminal growth (after yr 10)
3%
Assumed FCF growth: 0%/yr · Revenue growth: last FY -5.1% · 5-yr avg -6.5%/yr
Revenue: FY2021 $5.1B · FY2022 $6B · FY2023 $5.9B · FY2024 $5.3B · FY2025 $3.8B · FY2026 $3.6B
The growth assumption applies to free cash flow, not revenue, so free cash flow can grow faster than sales if margins recover.
AI Analysis
GameStop is evaluated using a 15% discount rate, placing it in the high-risk bucket due to the extreme volatility in its free cash flow—swinging from -$496.3M in 2022 to the current $727.7M Year-1 FCF figure—and its exposure to the structural decline of physical gaming retail. The valuation applies a 0% growth rate to this cash flow base over the next ten years. While the company has demonstrated a sharp recent recovery, this is viewed against a backdrop of declining revenue, which has dropped at a 5-year average of -6.5% annually. The terminal growth rate is 3%, which is fixed for every company to ensure the model does not assume growth rates exceeding the broader economy. To determine the fair value, the business's intrinsic value is combined with cash and reduced by debt to arrive at a fair value per share of $9.93. Given the current price of $24.62, the upside to fair value is -59.68%. Because the market price exceeds the fair value, there is no buffer for error in this estimate. Of the two primary inputs chosen for this company, the 15% discount rate would change the result most if modified, as the high required return heavily impacts the present value of future cash flows in a business with these specific operating characteristics.
Overall Verdict
How the five signals above stack up together, then the full synthesis.
Earnings Yield
6.12% vs ~4-5% bond-yield benchmark
Return on Capital
108.67% ROC · 2/2: above the 15% floor, above the Specialty Retail median of 38.6%
Acquirer's Multiple
29.0x against a peer median of 11.6x (peers: 10.0x and 13.3x) — 149.0% above the median.
FS-Score
7/10 — Solid but mixed
Intrinsic Value
-59.68% upside to fair value
GameStop Corp. presents a contrast between its operational efficiency and the price attached to it. The Return on Capital of 108.67% and an FS-Score of 7/10 suggest a company generating significant returns on its assets and maintaining functional operational stability. These quality metrics are tested against three valuation measures. While the Earnings Yield of 6.12% performs well against the bond-yield benchmark, the Acquirer's Multiple of 29.0x sits considerably above the peer median, indicating the company is priced at a premium relative to its operating earnings. Additionally, the Intrinsic Value check indicates a -59.68% upside to fair value, suggesting the current price exceeds the estimated fair value. This creates a tension where the business metrics reflect efficiency, but the price metrics indicate the cost of acquisition is disconnected from those returns. The overall picture would shift most significantly if the Acquirer's Multiple converged closer to the peer median, as this would realign the valuation with the company's operating performance.
Comments
Notes from readers on GME — one each. Comments stay with the company, so they carry across to a later snapshot, and each one shows the date it was written.
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