GameStop: An Old-Fashioned Valuation Analysis


  • I value stocks the traditional and common-sense way – based on their earnings prospects.
  • GameStop’s two decade earnings and revenue history show a steady decline of more than 10 years, due not to declining video games sales but of Gamestop’s market share.
  • The company’s store-based retailing model continues to get badly beaten by all-digital competitors.
  • Earnings and sales valuations put the stock’s fair value at $3-4.

Man drinking juice in inflatable ring

Klaus Vedfelt

First, two confessions. First, I am old-fashioned. I have an excuse – I collect Social Security. I haven’t played a computer game since Pong. I am on no social media. I’ve watched TikTok for less than two hours. I even have a landline!

Analyst’s Disclosure: I/we have a beneficial short position in the shares of GME either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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