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 Sales (P/S)
since 2006

Microsoft Excel

Calculation

GameStop Corp., P/S, 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.


Share Price Trend
The share price displayed considerable fluctuation over the periods analyzed. It initially increased from $5.81 in 2006 to a peak of $13.92 in 2008 before declining sharply to $1.06 by 2020. A significant surge followed in 2021 reaching $45.44, after which the price declined again to $15.50 by 2024. This pattern indicates considerable volatility with a notable spike during the early 2020s.
Sales Per Share Trend
Sales per share demonstrated a general upward trend from $5.28 in 2006 to $25.08 in 2020, evidencing consistent revenue growth on a per-share basis. However, post-2020, sales per share declined to $17.24 by 2024, suggesting a reversal or slowdown in growth after a prolonged increase.
Price-to-Sales (P/S) Ratio Analysis
The P/S ratio showed a decrease from 1.10 in 2006 to as low as 0.04 in 2020, reflecting a declining valuation multiple relative to sales. This suggests the market was pricing shares at lower multiples of sales, potentially due to company-specific or broader industry concerns. The P/S ratio then rose sharply to 2.50 in 2021, coinciding with the share price surge, before decreasing to 0.90 by 2024.
Overall Observations
The data indicate a period of growth in sales per share accompanied by erratic share price movements, particularly the dramatic share price rally in 2021 despite a decline in sales per share following that year. The elevated P/S ratio during the price spike suggests speculative market behavior or investor optimism outpacing fundamental sales performance. The subsequent decline in both share price and P/S ratio signals a correction or normalization towards more sustainable valuations.

Comparison to Competitors

GameStop Corp., P/S, 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/S, 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)