Stock Analysis on Net

GameStop Corp. (NYSE:GME)

$22.49

This company has been moved to the archive! The financial data has not been updated since June 11, 2024.

Price to Book Value (P/BV)
since 2006

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Calculation

GameStop Corp., P/BV, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02), 10-K (reporting date: 2012-01-28), 10-K (reporting date: 2011-01-29), 10-K (reporting date: 2010-01-30), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-02-02), 10-K (reporting date: 2007-02-03), 10-K (reporting date: 2006-01-28).

1 US$

2 Data adjusted for splits and stock dividends.

3 Closing price as at the filing date of GameStop Corp. Annual Report.


The share price of the company exhibited significant fluctuations over the analyzed period. Initially, there was a general upward trend from US$5.81 in 2006 to a peak of US$13.92 in 2008, followed by a decline to US$1.06 in 2020. A marked surge occurred in 2021, with the share price reaching US$45.44, before subsequently declining to US$15.50 by 2024. This pattern suggests a period of volatility with a substantial price spike around 2021.

The book value per share (BVPS) demonstrated a relatively steady increase from US$1.90 in 2006 to $5.68 in 2012, followed by a moderate decline and fluctuations between the values of approximately US$2.37 and US$5.57 from 2013 to 2024. Notably, BVPS hit its lowest point around 2021 at US$1.56, recovering thereafter to about US$4.38 by 2024. This indicates some variability in the company's net asset value per share, with periods of diminishing book value followed by recovery.

The price-to-book value ratio (P/BV) reveals intriguing insights into market valuation relative to the company's net asset value. Initially, the P/BV ratio peaked at 4.83 in 2008, indicating the market price was significantly higher than the book value per share. This ratio declined steadily to a low of 0.45 by 2020, indicating the market price was less than half the book value, suggesting undervaluation or low investor confidence. In 2021, the P/BV ratio surged dramatically to 29.11, aligning with the spike observed in the share price. This extreme valuation was followed by a decline, stabilizing around 3.54 in 2024.

Overall, the data indicates a historically volatile market perception of the company, with significant divergence between market price and book value, particularly around 2021. The spike in 2021 suggests an exceptional event impacting investor sentiment or market dynamics, leading to prices substantially exceeding intrinsic net asset values. The subsequent correction illustrates a return to a more normalized valuation range, though still above historical lows. The fluctuating BVPS suggests periods of asset erosion and recovery, influencing but not fully explaining the share price volatility.

Share Price Trend
Initial growth 2006-2008, followed by sharp decline towards 2020, then a dramatic spike in 2021, and moderate decline thereafter.
Book Value per Share (BVPS)
Steady increase until 2012, decline to a low in 2021, with recovery to near mid-range values by 2024.
Price-to-Book Value Ratio (P/BV)
High valuations in 2008, sustained decline to deep undervaluation by 2020, extreme overvaluation spike in 2021, followed by stabilization.

Comparison to Competitors

GameStop Corp., P/BV, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02), 10-K (reporting date: 2012-01-28), 10-K (reporting date: 2011-01-29), 10-K (reporting date: 2010-01-30), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-02-02), 10-K (reporting date: 2007-02-03), 10-K (reporting date: 2006-01-28).


Comparison to Sector (Consumer Discretionary Distribution & Retail)

GameStop Corp., P/BV, long-term trends, comparison to sector (consumer discretionary distribution & retail)

Microsoft Excel

Based on: 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02), 10-K (reporting date: 2012-01-28), 10-K (reporting date: 2011-01-29), 10-K (reporting date: 2010-01-30), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-02-02), 10-K (reporting date: 2007-02-03), 10-K (reporting date: 2006-01-28).


Comparison to Industry (Consumer Discretionary)