Price to Earnings (P/E)
since 2006
Calculation
GameStop Corp., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income (loss)1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Mar 26, 2024 | 707.62 | = | 15.50 | ÷ | 0.02 | 0.02 | = | 6,700 | ÷ | 305,873,200 | |
| Mar 28, 2023 | — | = | 23.15 | ÷ | -1.03 | -1.03 | = | -313,100 | ÷ | 304,675,439 | |
| Mar 17, 2022 | — | = | 21.93 | ÷ | -1.25 | -1.25 | = | -381,300 | ÷ | 305,356,992 | |
| Mar 23, 2021 | — | = | 45.44 | ÷ | -0.77 | -0.77 | = | -215,300 | ÷ | 279,743,312 | |
| Mar 27, 2020 | — | = | 1.06 | ÷ | -1.83 | -1.83 | = | -470,900 | ÷ | 257,831,968 | |
| Apr 2, 2019 | — | = | 2.53 | ÷ | -1.65 | -1.65 | = | -673,000 | ÷ | 409,069,740 | |
| Apr 2, 2018 | 37.59 | = | 3.21 | ÷ | 0.09 | 0.09 | = | 34,700 | ÷ | 406,333,276 | |
| Mar 27, 2017 | 5.97 | = | 5.21 | ÷ | 0.87 | 0.87 | = | 353,200 | ÷ | 404,843,424 | |
| Mar 28, 2016 | 7.76 | = | 7.52 | ÷ | 0.97 | 0.97 | = | 402,800 | ÷ | 415,503,088 | |
| Mar 30, 2015 | 10.33 | = | 9.42 | ÷ | 0.91 | 0.91 | = | 393,100 | ÷ | 431,074,852 | |
| Apr 2, 2014 | 14.12 | = | 10.84 | ÷ | 0.77 | 0.77 | = | 354,200 | ÷ | 461,223,708 | |
| Apr 3, 2013 | — | = | 7.56 | ÷ | -0.57 | -0.57 | = | -269,700 | ÷ | 471,345,104 | |
| Mar 27, 2012 | 9.37 | = | 5.94 | ÷ | 0.63 | 0.63 | = | 339,900 | ÷ | 535,923,784 | |
| Mar 30, 2011 | 7.81 | = | 5.66 | ÷ | 0.72 | 0.72 | = | 408,000 | ÷ | 562,801,572 | |
| Mar 30, 2010 | 8.85 | = | 5.46 | ÷ | 0.62 | 0.62 | = | 377,265 | ÷ | 611,296,400 | |
| Apr 1, 2009 | 11.65 | = | 7.05 | ÷ | 0.61 | 0.61 | = | 398,282 | ÷ | 658,047,952 | |
| Apr 2, 2008 | 31.23 | = | 13.92 | ÷ | 0.45 | 0.45 | = | 288,291 | ÷ | 646,834,832 | |
| Apr 4, 2007 | 31.82 | = | 8.25 | ÷ | 0.26 | 0.26 | = | 158,250 | ÷ | 610,309,448 | |
| Apr 3, 2006 | 33.76 | = | 5.81 | ÷ | 0.17 | 0.17 | = | 100,784 | ÷ | 585,674,360 |
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 financial trajectory from 2006 to 2024 is characterized by three distinct phases: a period of steady valuation contraction, a prolonged interval of fundamental instability, and a recent phase of extreme valuation decoupling.
- Earnings Performance and Profitability
- Earnings per share exhibited consistent growth from 2006 through 2012, peaking at 0.72 in 2011. Following a brief dip into negative territory in 2013, earnings recovered to reach a peak of 0.97 in 2016. However, a severe downward trend commenced in 2018, leading to a sustained period of losses between 2019 and 2023, with the lowest point occurring in 2020 at -1.83. A return to marginal profitability was achieved in 2024 with an earnings per share of 0.02.
- Share Price Volatility
- The share price experienced moderate growth until 2008, followed by a general long-term decline that bottomed at 1.06 in March 2020. This was followed by an unprecedented surge to 45.44 in 2021, representing a sharp departure from historical pricing patterns. Subsequent years show a partial correction, with the price settling at 15.50 by March 2024.
- Price-to-Earnings (P/E) Ratio Analysis
- Between 2006 and 2008, the P/E ratio remained stable in the 31 to 33 range. From 2009 to 2017, a significant contraction occurred, with the ratio falling as low as 5.97, indicating a reduction in the market's valuation multiple relative to earnings. The ratio became inapplicable between 2019 and 2023 due to negative earnings. The most notable anomaly appears in 2024, where the P/E ratio surged to 707.62; this extreme value is the result of a nominal return to profitability combined with a share price that remains significantly elevated relative to those earnings.
The overall data suggests a fundamental shift in the asset's valuation driver. While early years showed a relationship between earnings growth and price, the most recent data indicates that the share price is no longer closely aligned with historical earnings capacity, resulting in a valuation multiple that is statistically an outlier compared to the 2006-2017 period.
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Comparison to Competitors
GameStop Corp., P/E, long-term trends, comparison to competitors
| GameStop Corp. | Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | TJX Cos. Inc. | |
|---|---|---|---|---|---|
| Mar 26, 2024 | 707.62 | 40.99 | 24.80 | 18.81 | 24.63 |
| Mar 28, 2023 | — | 58.66 | 17.09 | 17.65 | 25.22 |
| Mar 17, 2022 | — | — | 19.94 | 17.84 | 22.20 |
| Mar 23, 2021 | — | 48.08 | 24.51 | 22.36 | 881.78 |
| Mar 27, 2020 | — | 78.20 | 17.38 | 11.96 | 17.13 |
| Apr 2, 2019 | — | 86.30 | 18.87 | 37.80 | 21.11 |
| Apr 2, 2018 | 37.59 | 79.30 | 23.51 | 20.26 | 20.19 |
| Mar 27, 2017 | 5.97 | 228.25 | 22.37 | 22.62 | 22.11 |
| Mar 28, 2016 | 7.76 | 166.52 | 23.32 | 26.67 | 22.87 |
| Mar 30, 2015 | 10.33 | 463.73 | 23.15 | 26.24 | 21.62 |
| Apr 2, 2014 | 14.12 | — | 20.18 | 21.79 | 20.15 |
| Apr 3, 2013 | — | 601.07 | 22.86 | 21.13 | 17.99 |
| Mar 27, 2012 | 9.37 | — | 19.49 | 20.46 | 19.73 |
| Mar 30, 2011 | 7.81 | 129.38 | 18.15 | 17.66 | 14.54 |
| Mar 30, 2010 | 8.85 | 67.02 | 20.76 | 19.70 | 14.57 |
| Apr 1, 2009 | 11.65 | 61.80 | 18.59 | 12.26 | 12.02 |
| Apr 2, 2008 | 31.23 | 39.07 | 11.24 | 12.74 | 18.61 |
| Apr 4, 2007 | 31.82 | 65.85 | 12.59 | 15.42 | 16.30 |
| Apr 3, 2006 | 33.76 | 88.17 | 15.57 | 18.31 | 16.91 |
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/E, long-term trends, comparison to sector (consumer discretionary distribution & retail)
| GameStop Corp. | Consumer Discretionary Distribution & Retail | |
|---|---|---|
| Mar 26, 2024 | 707.62 | 35.33 |
| Mar 28, 2023 | — | 39.66 |
| Mar 17, 2022 | — | 63.32 |
| Mar 23, 2021 | — | 40.84 |
| Mar 27, 2020 | — | 49.11 |
| Apr 2, 2019 | — | 48.49 |
| Apr 2, 2018 | 37.59 | 45.41 |
| Mar 27, 2017 | 5.97 | 60.50 |
| Mar 28, 2016 | 7.76 | 47.75 |
| Mar 30, 2015 | 10.33 | 45.72 |
| Apr 2, 2014 | 14.12 | 38.28 |
| Apr 3, 2013 | — | 39.66 |
| Mar 27, 2012 | 9.37 | 37.17 |
| Mar 30, 2011 | 7.81 | 26.94 |
| Mar 30, 2010 | 8.85 | 27.21 |
| Apr 1, 2009 | 11.65 | 21.68 |
| Apr 2, 2008 | 31.23 | 14.47 |
| Apr 4, 2007 | 31.82 | 16.25 |
| Apr 3, 2006 | 33.76 | 17.92 |
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)
GameStop Corp., P/E, long-term trends, comparison to industry (consumer discretionary)
| GameStop Corp. | Consumer Discretionary | |
|---|---|---|
| Mar 26, 2024 | 707.62 | 39.33 |
| Mar 28, 2023 | — | 33.63 |
| Mar 17, 2022 | — | 46.01 |
| Mar 23, 2021 | — | 39.27 |
| Mar 27, 2020 | — | 73.74 |
| Apr 2, 2019 | — | 39.37 |
| Apr 2, 2018 | 37.59 | 33.13 |
| Mar 27, 2017 | 5.97 | 47.03 |
| Mar 28, 2016 | 7.76 | 29.19 |
| Mar 30, 2015 | 10.33 | 24.70 |
| Apr 2, 2014 | 14.12 | 29.48 |
| Apr 3, 2013 | — | 26.50 |
| Mar 27, 2012 | 9.37 | 20.90 |
| Mar 30, 2011 | 7.81 | 11.38 |
| Mar 30, 2010 | 8.85 | 17.54 |
| Apr 1, 2009 | 11.65 | 18.66 |
| Apr 2, 2008 | 31.23 | 303.41 |
| Apr 4, 2007 | 31.82 | 24.33 |
| Apr 3, 2006 | 33.76 | 117.34 |
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).