Price to Sales (P/S)
since 2006
Calculation
GameStop Corp., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Net sales1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Mar 26, 2024 | 0.90 | = | 15.50 | ÷ | 17.24 | 17.24 | = | 5,272,800 | ÷ | 305,873,200 | |
| Mar 28, 2023 | 1.19 | = | 23.15 | ÷ | 19.45 | 19.45 | = | 5,927,200 | ÷ | 304,675,439 | |
| Mar 17, 2022 | 1.11 | = | 21.93 | ÷ | 19.68 | 19.68 | = | 6,010,700 | ÷ | 305,356,992 | |
| Mar 23, 2021 | 2.50 | = | 45.44 | ÷ | 18.19 | 18.19 | = | 5,089,800 | ÷ | 279,743,312 | |
| Mar 27, 2020 | 0.04 | = | 1.06 | ÷ | 25.08 | 25.08 | = | 6,466,000 | ÷ | 257,831,968 | |
| Apr 2, 2019 | 0.12 | = | 2.53 | ÷ | 20.25 | 20.25 | = | 8,285,300 | ÷ | 409,069,740 | |
| Apr 2, 2018 | 0.14 | = | 3.21 | ÷ | 22.70 | 22.70 | = | 9,224,600 | ÷ | 406,333,276 | |
| Mar 27, 2017 | 0.25 | = | 5.21 | ÷ | 21.26 | 21.26 | = | 8,607,900 | ÷ | 404,843,424 | |
| Mar 28, 2016 | 0.33 | = | 7.52 | ÷ | 22.54 | 22.54 | = | 9,363,800 | ÷ | 415,503,088 | |
| Mar 30, 2015 | 0.44 | = | 9.42 | ÷ | 21.56 | 21.56 | = | 9,296,000 | ÷ | 431,074,852 | |
| Apr 2, 2014 | 0.55 | = | 10.84 | ÷ | 19.60 | 19.60 | = | 9,039,500 | ÷ | 461,223,708 | |
| Apr 3, 2013 | 0.40 | = | 7.56 | ÷ | 18.85 | 18.85 | = | 8,886,700 | ÷ | 471,345,104 | |
| Mar 27, 2012 | 0.33 | = | 5.94 | ÷ | 17.82 | 17.82 | = | 9,550,500 | ÷ | 535,923,784 | |
| Mar 30, 2011 | 0.34 | = | 5.66 | ÷ | 16.83 | 16.83 | = | 9,473,700 | ÷ | 562,801,572 | |
| Mar 30, 2010 | 0.37 | = | 5.46 | ÷ | 14.85 | 14.85 | = | 9,077,997 | ÷ | 611,296,400 | |
| Apr 1, 2009 | 0.53 | = | 7.05 | ÷ | 13.38 | 13.38 | = | 8,805,897 | ÷ | 658,047,952 | |
| Apr 2, 2008 | 1.27 | = | 13.92 | ÷ | 10.97 | 10.97 | = | 7,093,962 | ÷ | 646,834,832 | |
| Apr 4, 2007 | 0.95 | = | 8.25 | ÷ | 8.72 | 8.72 | = | 5,318,900 | ÷ | 610,309,448 | |
| Apr 3, 2006 | 1.10 | = | 5.81 | ÷ | 5.28 | 5.28 | = | 3,091,783 | ÷ | 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 Price to Sales (P/S) ratio exhibits three distinct phases over the analyzed period: a prolonged era of valuation compression, a sudden and extreme anomalous spike, and a subsequent period of moderate stabilization.
- Long-term Valuation Compression (2006–2020)
- Between 2006 and 2020, a significant divergence is observed between revenue performance and market valuation. While sales per share increased steadily from $5.28 in 2006 to a peak of $25.08 in 2020, the P/S ratio experienced a consistent downward trajectory, falling from 1.10 to a low of 0.04. This trend indicates that while the company was generating more revenue per share, the market's willingness to pay for each dollar of those sales declined precipitously over 14 years.
- 2021 Valuation Anomaly
- A drastic reversal in the valuation trend occurred in 2021, characterized by a surge in the P/S ratio to 2.50, the highest level in the dataset. This spike was driven by a rapid increase in share price to $45.44, which occurred despite a simultaneous decline in sales per share from $25.08 to $18.19. This pattern suggests a decoupling of the share price from fundamental revenue metrics during this period.
- Recent Normalization and Stabilization (2022–2024)
- Following the 2021 peak, the P/S ratio entered a phase of relative stabilization, fluctuating between 0.90 and 1.19. Although the share price trended downward from its peak to $15.50 by March 2024, and sales per share remained lower than their 2020 peak at $17.24, the P/S ratio has remained significantly higher than the levels observed between 2010 and 2020.
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Comparison to Competitors
GameStop Corp., P/S, long-term trends, comparison to competitors
| GameStop Corp. | Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | TJX Cos. Inc. | |
|---|---|---|---|---|---|
| Mar 26, 2024 | 0.90 | 3.81 | 2.46 | 1.68 | 2.03 |
| Mar 28, 2023 | 1.19 | 3.10 | 1.86 | 1.17 | 1.77 |
| Mar 17, 2022 | 1.11 | 2.06 | 2.17 | 1.56 | 1.50 |
| Mar 23, 2021 | 2.50 | 3.41 | 2.39 | 1.46 | 2.48 |
| Mar 27, 2020 | 0.04 | 4.32 | 1.77 | 0.71 | 1.34 |
| Apr 2, 2019 | 0.12 | 3.56 | 1.94 | 1.23 | 1.66 |
| Apr 2, 2018 | 0.14 | 3.43 | 2.01 | 1.02 | 1.47 |
| Mar 27, 2017 | 0.25 | 3.89 | 1.88 | 1.08 | 1.53 |
| Mar 28, 2016 | 0.33 | 2.90 | 1.85 | 1.15 | 1.68 |
| Mar 30, 2015 | 0.44 | 2.58 | 1.77 | 1.26 | 1.65 |
| Apr 2, 2014 | 0.55 | 1.85 | 1.38 | 0.93 | 1.57 |
| Apr 3, 2013 | 0.40 | 2.21 | 1.39 | 0.82 | 1.33 |
| Mar 27, 2012 | 0.33 | 2.03 | 1.08 | 0.75 | 1.27 |
| Mar 30, 2011 | 0.34 | 1.70 | 0.89 | 0.73 | 0.89 |
| Mar 30, 2010 | 0.37 | 2.26 | 0.83 | 0.74 | 0.87 |
| Apr 1, 2009 | 0.53 | 2.27 | 0.59 | 0.56 | 0.56 |
| Apr 2, 2008 | 1.27 | 1.31 | 0.64 | 0.74 | 0.77 |
| Apr 4, 2007 | 0.95 | 2.11 | 0.80 | 1.02 | 0.69 |
| Apr 3, 2006 | 1.10 | 1.56 | 1.11 | 1.17 | 0.73 |
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)
| GameStop Corp. | Consumer Discretionary Distribution & Retail | |
|---|---|---|
| Mar 26, 2024 | 0.90 | 3.29 |
| Mar 28, 2023 | 1.19 | 2.59 |
| Mar 17, 2022 | 1.11 | 1.99 |
| Mar 23, 2021 | 2.50 | 2.94 |
| Mar 27, 2020 | 0.04 | 3.23 |
| Apr 2, 2019 | 0.12 | 2.73 |
| Apr 2, 2018 | 0.14 | 2.56 |
| Mar 27, 2017 | 0.25 | 2.67 |
| Mar 28, 2016 | 0.33 | 2.16 |
| Mar 30, 2015 | 0.44 | 1.97 |
| Apr 2, 2014 | 0.55 | 1.47 |
| Apr 3, 2013 | 0.40 | 1.52 |
| Mar 27, 2012 | 0.33 | 1.30 |
| Mar 30, 2011 | 0.34 | 1.06 |
| Mar 30, 2010 | 0.37 | 1.10 |
| Apr 1, 2009 | 0.53 | 0.83 |
| Apr 2, 2008 | 1.27 | 0.76 |
| Apr 4, 2007 | 0.95 | 0.96 |
| Apr 3, 2006 | 1.10 | 1.12 |
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/S, long-term trends, comparison to industry (consumer discretionary)
| GameStop Corp. | Consumer Discretionary | |
|---|---|---|
| Mar 26, 2024 | 0.90 | 3.45 |
| Mar 28, 2023 | 1.19 | 2.63 |
| Mar 17, 2022 | 1.11 | 2.27 |
| Mar 23, 2021 | 2.50 | 3.58 |
| Mar 27, 2020 | 0.04 | 3.81 |
| Apr 2, 2019 | 0.12 | 2.33 |
| Apr 2, 2018 | 0.14 | 2.05 |
| Mar 27, 2017 | 0.25 | 2.06 |
| Mar 28, 2016 | 0.33 | 1.68 |
| Mar 30, 2015 | 0.44 | 1.57 |
| Apr 2, 2014 | 0.55 | 1.32 |
| Apr 3, 2013 | 0.40 | 1.33 |
| Mar 27, 2012 | 0.33 | 1.06 |
| Mar 30, 2011 | 0.34 | 0.97 |
| Mar 30, 2010 | 0.37 | 0.96 |
| Apr 1, 2009 | 0.53 | 0.92 |
| Apr 2, 2008 | 1.27 | 0.66 |
| Apr 4, 2007 | 0.95 | 0.79 |
| Apr 3, 2006 | 1.10 | 0.86 |
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).