Rankings Food, drinks & restaurants GameStop
GameStop
58
15070100
A view of the same findings, not a new score. How it works
A good business with a real question mark: the price, a crack, or both.
Biggest deductions
- Quality of growth−6
- Hostile bid for eBay−6
- Capital allocation−5
Strengths
- Raised guidance+2
- Margin improvement+1
- Net cash+1
How the score is built
From 100 to 58, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 2 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 24.19 USD
- Median analyst target
- –
- Upside to median
- –
- Analysts
- none
- Target range
- –
- 52-week change
- +9%
- P/E (trailing)
- 15.9
- Forward P/E
- 16.0
- PEG
- n/a
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 4 findings−17 of −30
- −6Quality of growthRevenue has fallen from USD 6.0bn (FY2021) to 3.55bn (TTM); Q2 sales fell 19% to USD 790m, and video games fell from 495 to 263m USD. The core business is shrinking structurally, stores are being closed, and France has been sold.
- −3Quality of earningsPre-tax profit of USD 1.09bn (TTM) vs operating profit of 492m; more than half comes from interest income (USD 77m in Q2 alone) and investment gains, not from store operations.
- −3DilutionThe share count rose 24.8% over a year (after −39% and −29% in 'buyback yield' in the two preceding fiscal years) – share issuance has financed the liquidity build-up.
- −5Capital allocationUSD 4.4bn has been spent on 43.4m eBay shares as a springboard for a hostile bid, and the company has a bitcoin reserve with a loss of USD 75m in Q2 – capital is being used on speculative positions rather than operations.
Price
Today's multiples against the company's own history and its peers. · 2 findings−7 of −35
- −4Multiples vs own historyEV/Sales 3.3 and P/S 3.5 vs 0.74-2.06 and 0.85-3.14 in FY2022-FY2026 - the highest sales multiple in five years, while revenue is falling. Forward P/E 13.5 is low, but EPS is inflated by interest income.
- −3Premium to net assetsMarket cap USD 12.5bn vs about USD 6.0bn in net assets (cash 5.4bn + eBay 4.9bn - debt 4.3bn; P/B 1.81) - about USD 6.5bn is being paid for a shrinking retail business.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 5 findings−16 of −35
- −6Hostile bid for eBayThe bid of about USD 56bn (USD 125 per share, half cash, half GameStop shares) was rejected as 'neither credible nor attractive' due to financing, operating risk and governance; only under USD 30bn of the financing is documented (incl. USD 20bn in debt commitments from TD). If completed, GameStop would become a heavily indebted and diluted group.
- −3Concentration in eBay and bitcoinThe eBay position of USD 4.9bn corresponds to about 39% of the market cap, and digital assets (USD 294m) are marked to market; earnings will swing with two single assets.
- −3GovernanceRyan Cohen is both CEO and chairman; a proposed CEO performance award had to be withdrawn from the general meeting in June 2026, and eBay itself pointed to GameStop's governance as a reason for rejection.
- −2Convertible debt0% convertible bonds maturing 2030 and 2032 (long-term debt USD 4.17bn as of 1 Aug.); USD 1.4bn was exchanged on 3 Sep. 2026, so approx. USD 2.8bn remains as potential dilution or cash redemption.
- −2Dependence on the trading card boomCollectibles (especially trading cards) grew 57% and now make up 45% of sales; the margin lift rests on a category that is historically driven by fads.
Plus
Only documented strengths. · 3 findings+4 of +15
- +2Raised guidanceAdjusted EBITDA expectation for FY2026 raised to over USD 650m; adjusted EBITDA in Q2 USD 174m (76).
- +1Margin improvementGross margin 43.7% in Q2 vs 29.1% a year earlier and the highest Q2 operating profit in the company's history (USD 160m).
- +1
Caveats
What the score does not capture, or where the data is weak.
The NYSE listing (GME). No analyst coverage (stockanalysis forecast 404), so upside and revision formulas have no basis. Specialty retail does not fit the industry list; 'Consumer' was chosen as the closest. The balance sheet is dominated by liquidity (USD 5.4bn incl. digital assets) and an eBay stake (USD 4.9bn), so P/E is affected by interest income and price gains. The terms of the exchange of convertible bonds for USD 1.4bn on 3 Sep. 2026 (cash or shares) have not been investigated. The current size of the bitcoin holding has not been determined. Status of the hostile eBay bid after the rejection in May 2026 (proxy fight) is unresolved.
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