Name: GameStop Corp. (NYSE:GME) | Enterprise Value (EV)
Creator: Stock Analysis on Net

Current EV
Historical EV

GameStop Corp., current enterprise value calculation

Current share price (P)	$30.49
No. shares of common stock outstanding	351,217,517
US$ in thousands
Common equity (market value)¹	10,708,622)
Total equity	10,708,622)
Add: Current portion of long-term debt (per books)	10,800)
Add: Borrowings under revolving line of credit (per books)	—)
Add: Long-term debt, excluding current portion (per books)	17,700)
Total equity and debt	10,737,122)
Less: Cash and cash equivalents	921,700)
Less: Marketable securities	277,600)
Enterprise value (EV)	9,537,822)

Based on: 10-K (reporting date: 2024-02-03).

¹ Common equity (market value) = Share price × No. shares of common stock outstanding
= 30.49 × 351,217,517

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GameStop Corp., EV calculation

	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019
Share price^1, 2	$15.50	$23.15	$21.93	$45.44	$1.06	$2.53
No. shares of common stock outstanding¹	305,873,200	304,675,439	305,356,992	279,743,312	257,831,968	409,069,740
US$ in thousands
Common equity (market value)³	4,741,035)	7,053,236)	6,696,479)	12,711,536)	273,302)	1,034,946)
Total equity	4,741,035)	7,053,236)	6,696,479)	12,711,536)	273,302)	1,034,946)
Add: Current portion of long-term debt (book value)	10,800)	10,800)	4,100)	121,700)	—)	349,200)
Add: Borrowings under revolving line of credit (book value)	—)	—)	—)	25,000)	—)	—)
Add: Long-term debt, excluding current portion (book value)	17,700)	28,700)	40,500)	216,000)	419,800)	471,600)
Total equity and debt	4,769,535)	7,092,736)	6,741,079)	13,074,236)	693,102)	1,855,746)
Less: Cash and cash equivalents	921,700)	1,139,000)	1,271,400)	508,500)	499,400)	1,624,400)
Less: Marketable securities	277,600)	251,600)	—)	—)	—)	—)
Enterprise value (EV)	3,570,235)	5,702,136)	5,469,679)	12,565,736)	193,702)	231,346)

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).

¹ Data adjusted for splits and stock dividends.

² Closing price as at the filing date of GameStop Corp. Annual Report.

³ 2024 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 15.50 × 305,873,200

The financial metrics exhibit extreme volatility over the six-year period, characterized by a massive expansion in valuation followed by a sustained multi-year correction. The most significant movement occurred between February 2020 and January 2021, during which the valuation surged exponentially before entering a period of gradual decline.

Enterprise Value Trends: Enterprise value experienced an exponential increase from US$ 193.7 million in 2020 to a peak of US$ 12.57 billion in 2021. Following this peak, a downward trajectory was established, with values falling to US$ 5.47 billion in 2022, stabilizing slightly at US$ 5.70 billion in 2023, and ultimately decreasing to US$ 3.57 billion by February 2024.
Equity Market Valuation: Common equity market value mirrored the trend of enterprise value, spiking from US$ 273.3 million in 2020 to US$ 12.71 billion in 2021. This peak represents the highest valuation in the observed period. A subsequent and consistent reduction is observed, with the market value ending at US$ 4.74 billion in 2024.
Capital Structure Analysis: The close alignment between total equity and total equity and debt indicates a capital structure dominated by equity with minimal reliance on debt. In February 2024, total equity and debt were recorded at US$ 4.77 billion compared to a common equity value of US$ 4.74 billion, suggesting that debt contributes negligibly to the overall enterprise valuation.
Valuation Convergence: A notable pattern is the convergence of market value and enterprise value during the 2021 peak, where both figures reached their highest points. However, the subsequent decline in enterprise value has been more pronounced than the decline in total equity, reflecting a shift in the net debt or cash positions that influence the final enterprise valuation.

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GameStop Corp. (NYSE:GME)

Enterprise Value (EV)

Current Enterprise Value (EV)

Historical Enterprise Value (EV)