GameStop Corp. (GME) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Consumer Cyclical · Specialty Retail
Is GameStop Corp. a safe investment right now?
GameStop Corp.'s Altman Z-Score of 2.95 places it in the gray zone. Our fair value estimate is $21.79 (Overvalued). Moat rating: 2.9/5 stars.
Could GameStop Corp. go bankrupt? Altman Z-Score analysis
Z-Score of 2.95 places the company in the gray zone (1.8-3.0), warranting closer scrutiny.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives GME's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.9007 | 1.2 | 1.08 |
| B · Retained Earnings / Total Assets | RE / TA | 0.0198 | 1.4 | 0.03 |
| C · EBIT / Total Assets | EBIT / TA | 0.0275 | 3.3 | 0.09 |
| D · Market Cap / Total Liabilities | MCap / TL | 2.3271 | 0.6 | 1.4 |
| E · Revenue / Total Assets | Rev / TA | 0.3494 | 1.0 | 0.35 |
How has GME's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2023 | 5.71 | Safe |
| 2024 | 7.3 | Safe |
| 2025 | 8.88 | Safe |
| 2026 | 2.95 | Gray |
Source: Calculated from GME's latest 10-K filing on SEC EDGAR.
What is GameStop Corp. actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $0.77 | Proprietary blend of reported actuals + analyst consensus, weighted by α |
| Last Year EPS | $0.77 | Annual report (SEC EDGAR) |
| Trailing P/E | 33.3x | Current market pricing |
| Fair P/E (β discount) | 28.3x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Stable | Directional signal: predicted vs trailing EPS |
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does GameStop Corp. have a durable competitive advantage?
Moat rating: 2.9/5.
What makes up GME's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 2/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 4/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is GME's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2023 | -22.7% | — |
| 2024 | -2.2% | Rising |
| 2025 | -0.3% | Rising |
| 2026 | 3.0% | Rising |
Source: ROIC calculated from SEC EDGAR filings.
Is GameStop Corp.'s dividend safe?
GameStop Corp.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $3.6B | $3.8B | $5.9B | Declining |
| Net Income | $0.4B | $0.1B | −$0.3B | Rising |
| Free Cash Flow | $0.6B | $0.1B | $0.1B | Rising |
| Gross Margin | 33.0% | 29.1% | 23.2% | Rising |
Recent events that affect our GME analysis
GME earnings report scheduled
Upcoming report. Our current Fair Value: $21.79 — a significant beat or miss could shift this estimate.
GME filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
GME filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
GME filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
GME filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
GME beat EPS estimates by 20.0%
Reported EPS: $0.24 vs estimate $0.20. Earnings strength supports our Fair Value of $21.79 (15.1% below current price).
GME filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
GME filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
GME filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
GME beat EPS estimates by 61.3%
Reported EPS: $0.25 vs estimate $0.16. Earnings strength supports our Fair Value of $21.79 (15.1% below current price).
GME filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
GME filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
GME filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
GME filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
GME filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
GME filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
GME beat EPS estimates by 325.0%
Reported EPS: $0.17 vs estimate $0.04. Earnings strength supports our Fair Value of $21.79 (15.1% below current price).
GME filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
GME filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
GME filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
GME filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
GME beat EPS estimates by 275.0%
Reported EPS: $0.30 vs estimate $0.08. Earnings strength supports our Fair Value of $21.79 (15.1% below current price).
GME filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
GME filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
GME filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about GameStop Corp.
What is GameStop Corp. stock price today?
GameStop Corp. (GME) stock price is $25.66 as of the latest market close, traded on the NYSE exchange.
What does GameStop Corp. do?
GameStop Corp., a specialty retailer, provides games, collectibles, and entertainment products through its stores and e-commerce platforms in United States, Australia and Europe. It sells new and pre-owned gaming platforms; accessories, such as controllers, gaming headsets, and other peripheral devices; new and pre-owned gaming software; and in-game digital currency, digital downloadable content, and full-game downloads. It also sells collectibles comprising apparel, toys, trading cards, gadgets, and other retail products for pop culture and technology enthusiasts.
What is GameStop Corp. market cap?
GameStop Corp. has a market capitalization of $11.51B, classifying it as a large-cap stock in the Consumer Cyclical sector.
What sector and industry is GME in?
GameStop Corp. operates in the Consumer Cyclical sector, specifically within the Specialty Retail industry. It trades on the NYSE under the ticker symbol GME.
Is GME stock overvalued or undervalued?
Based on our valuation model, GameStop Corp. trades 17.8% above our fair value estimate — potentially overvalued.
- FairValueLabs Fair Value: $21.79
- Current Price: $25.66
- Valuation Zone: Overvalued
Is GameStop Corp. revenue and earnings growing?
Here are the analyst consensus growth estimates for GameStop Corp.:
- Revenue growth (current year est.): 0.0%
- EPS growth (current year est.): 0.0%
- Revenue growth (next year est.): 0.0%
- EPS growth (next year est.): 0.0%
What are GameStop Corp.'s key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $3.6B | Declining |
| Net Income | $0.4B | Rising |
| Free Cash Flow | $0.6B | Rising |
| Gross Margin | 33.0% | Rising |
What is GME's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 33.3x
- Forward P/E (next 12 months est.): 31.7x
- FairValueLabs Fair P/E: 28.3x
How volatile is GME stock?
GameStop Corp. has a beta of 1.85, meaning it is significantly more volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does GameStop Corp. have?
GameStop Corp.'s balance sheet shows:
- Total Cash: $9.01B
- Total Debt: $4.36B
- Net Cash Position: $4.65B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is GameStop Corp.'s free cash flow?
GameStop Corp. generated $-159.7M in trailing twelve-month free cash flow (from $614.8M in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does GameStop Corp. pay a dividend?
GameStop Corp. does not currently pay a regular dividend to shareholders. The company may be reinvesting all profits back into growth, or it may have suspended its dividend.
Is GameStop Corp. at risk of going bankrupt?
GameStop Corp.'s Altman Z-Score is 2.95, placing it in the gray zone (1.8–3.0) — some financial uncertainty. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does GameStop Corp. have a durable competitive advantage?
GameStop Corp. scores 2.9/5 stars (Narrow moat · eroding) in our moat analysis:
- ROIC Stability: 2/5
- Gross Margin Trend: 4/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is GME's return on equity (ROE)?
GameStop Corp.'s return on equity is 8.1%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy GME stock?
GME shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol GME
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is GME a value stock or speculative?
FairValueLabs classifies GameStop Corp. as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of GameStop Corp.?
The current CEO of GameStop Corp. is Mr. Ryan Cohen.
What is GME's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $0.77
- Forward EPS (next 12 months est.): $0.81
Other Consumer Cyclical companies analyzed by FairValueLabs
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
GME analysis methodology: How we calculate fair value, Z-Scores, and moat ratings