GME
GameStop Corp
Price:  
23.19 
USD
Volume:  
14,689,325
United States | Specialty Retail

Gamestop Fair Value

-49.8 %
Upside

What is the fair value of Gamestop?

As of 2025-07-10, the Fair Value of GameStop Corp (GME) is 11.64 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 23.19 USD, the upside of GameStop Corp is -49.8%.

Is Gamestop a good investment?

With the market price of 23.19 USD and our fair value calculation, GameStop Corp (GME) is not a good investment. Investing in Gamestop stocks now will result in a potential loss of 49.8%.

23.19 USD
Stock Price
11.64 USD
Fair Price
FAIR VALUE CALCULATION

Gamestop Fair Value

Peter Lynch's formula is:

Gamestop Fair Value
= Earnings Growth Rate x TTM EPS
Gamestop Fair Value
= 25 x 0.47
Gamestop Fair Value
= 11.64

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

Historical Earnings
01-202101-202201-202302-202402-20255Y Avg
Net income-215.3-381.3-313.16.7131.3-154
YoY growth54.3%-77.1%17.9%102.1%1859.7%391.4%

Gamestop Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
Ulta Beauty Inc21,47226.4660.6138.9%
Williams-Sonoma Inc21,3678.9221.7427.6%
Burlington Stores Inc15,9598.3208.75-17.6%
Best Buy Co Inc15,3394.220.86-71.2%
Asbury Automotive Group Inc5,13121.1528.1102.3%
Signet Jewelers Ltd3,333125.74-68%
Michaels Companies Inc3,1112.412.14-44.8%
Foot Locker Inc2,382-3.8-18.78-175.3%
Camping World Holdings Inc1,889-0.3-4.31-123.3%
American Eagle Outfitters Inc1,7381.128.39183%

Gamestop Fair Value - Key Data

Market Cap (mil)10,373
P/E49.8x
Forward P/E60.9x
EPS0.47
Avg earnings growth rate391.4%
TTM earnings208

Gamestop Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.