GameStop Corp. (GME) DCF Valuation
Transparent DCF models put GameStop Corp. (GME)'s fair value in a range of $3.82 – $9.51 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $22.48 sits above that range — by these conservative assumptions it looks richly valued; the reverse-DCF below is the better lens for a high-growth name.
Reverse DCF: at today's $22.48, the market is pricing in roughly +22.6%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of +53.8%. The price assumes a slowdown from its track record — a potential value signal if growth holds.
Current Price
$22.48
Fair-Value Range
$3.82 – $9.51
Market-Implied Growth
+22.6%/yr
vs +53.8% 5Y actual
GME DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $135.2M · 0.45B shares · net cash $2.1B
Estimated Fair Value
$9.51
-57.7% vs $22.48
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $22.48; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $10.71 | $11.03 | $11.40 | $11.85 | $12.39 |
| 9.0% | $9.85 | $10.06 | $10.31 | $10.60 | $10.94 |
| 10.0% | $9.19 | $9.34 | $9.51 | $9.71 | $9.94 |
| 11.0% | $8.67 | $8.78 | $8.91 | $9.05 | $9.21 |
| 12.0% | $8.25 | $8.34 | $8.43 | $8.53 | $8.65 |
About GameStop Corp.
GameStop Corp. operates as a prominent specialty retailer, providing a diverse array of gaming and entertainment products to customers across the United States, Canada, Australia, and Europe, both through its online platforms and physical store locations. The company's merchandise includes new and pre-owned video game consoles, a wide selection of accessories such as controllers, gaming headsets, virtual reality equipment, and memory cards, as well as new and used gaming software. GameStop also offers digital gaming content, encompassing in-game currency, downloadable content (DLC), and full digital game downloads. Beyond its core gaming offerings, GameStop diversifies its inventory with licensed pop culture merchandise. These collectibles are primarily sourced from popular gaming franchises, television shows, movies, and broader pop culture themes. As of January 29, 2022, GameStop's retail network comprised 4,573 stores and e-commerce sites operating under its main brands: GameStop, EB Games, and Micromania. Additionally, the company managed 50 specialized Zing Pop Culture outlets, which retail various collectibles, apparel, gadgets, electronics, and toys. GameStop also publishes Game Informer, a well-regarded print and digital video game publication known for its reviews of new releases, previews of upcoming titles, and coverage of the latest industry developments. Established in 1996 and formerly known as GSC Holdings Corp., GameStop Corp. maintains its corporate headquarters in Grapevine, Texas.
- Sector
- Consumer Cyclical
- Industry
- Specialty Retail
- CEO
- Ryan Cohen