Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
GameStop Corp., FCFE calculation
US$ in thousands
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).
The financial performance from 2019 through 2024 is characterized by extreme volatility in both operating cash flows and free cash flow to equity (FCFE). A recurring pattern of alternating between periods of cash generation and significant cash depletion is observed, indicating an unstable liquidity profile over the analyzed period.
- Net Cash Flows from Operating Activities
- Operating cash flows have fluctuated inconsistently, with positive inflows recorded in 2019, 2021, and 2023. The highest operational cash generation occurred in 2019 at 325,100 thousand USD. This is contrasted by substantial outflows in 2020, 2022, and 2024, with the most significant operating deficit of 434,300 thousand USD occurring in 2022.
- Free Cash Flow to Equity (FCFE) Trends
- FCFE demonstrates more pronounced instability than operating cash flows. Severe contractions were recorded in 2020 and 2022, with deficits reaching 897,500 thousand USD and 828,700 thousand USD, respectively. Although modest recoveries were noted in 2021 and 2023, the trend concluded with a deficit of 236,200 thousand USD in 2024.
- Operating and Equity Cash Flow Divergence
- A correlation exists between operating cash flows and FCFE, yet the magnitude of FCFE deficits consistently exceeds the operational losses. This divergence is most evident in 2020 and 2022, suggesting that capital expenditures or debt-related obligations significantly amplified the cash drain during periods of negative operating cash flow, thereby reducing the capital available to equity holders.
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Price to FCFE Ratio, Current
GameStop Corp., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 351,217,517 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in thousands) | (236,200) |
| FCFE per share | -0.67 |
| Current share price (P) | 30.49 |
| Valuation Ratio | |
| P/FCFE | — |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Amazon.com Inc. | 132.15 |
| Home Depot Inc. | 20.84 |
| Lowe’s Cos. Inc. | 8.65 |
| TJX Cos. Inc. | 31.75 |
| P/FCFE, Sector | |
| Consumer Discretionary Distribution & Retail | 58.11 |
| P/FCFE, Industry | |
| Consumer Discretionary | 41.82 |
Based on: 10-K (reporting date: 2024-02-03).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
GameStop Corp., historical P/FCFE calculation, comparison to benchmarks
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 305,873,200 | 304,675,439 | 305,356,992 | 279,743,312 | 257,831,968 | 409,069,740 | |
| Selected Financial Data (US$) | |||||||
| Free cash flow to equity (FCFE) (in thousands)2 | (236,200) | 48,400) | (828,700) | 101,000) | (897,500) | 219,200) | |
| FCFE per share3 | -0.77 | 0.16 | -2.71 | 0.36 | -3.48 | 0.54 | |
| Share price1, 4 | 15.50 | 23.15 | 21.93 | 45.44 | 1.06 | 2.53 | |
| Valuation Ratio | |||||||
| P/FCFE5 | — | 145.73 | — | 125.86 | — | 4.72 | |
| Benchmarks | |||||||
| P/FCFE, Competitors6 | |||||||
| Amazon.com Inc. | 89.69 | 84.16 | 240.95 | — | — | — | |
| Home Depot Inc. | 20.12 | 19.60 | 19.87 | 15.41 | — | — | |
| Lowe’s Cos. Inc. | 18.03 | 7.08 | 13.55 | 12.28 | — | — | |
| TJX Cos. Inc. | 28.74 | 33.59 | — | 10.55 | — | — | |
| P/FCFE, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 53.08 | 41.58 | 51.89 | 59.10 | — | — | |
| P/FCFE, Industry | |||||||
| Consumer Discretionary | 39.73 | 30.88 | 36.45 | 83.41 | — | — | |
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.
3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= -236,200,000 ÷ 305,873,200 = -0.77
4 Closing price as at the filing date of GameStop Corp. Annual Report.
5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 15.50 ÷ -0.77 = —
6 Click competitor name to see calculations.
The financial data indicates a period of extreme volatility in both equity valuation and cash flow generation. A recurring pattern of alternating positive and negative Free Cash Flow to Equity (FCFE) per share is observed, which prevents the consistent application of the P/FCFE ratio across all reporting periods.
- Share Price Volatility
- The share price exhibited a dramatic increase between February 2020 and January 2021, rising from 1.06 US$ to a peak of 45.44 US$. Following this peak, a gradual downward trend occurred, with the price settling at 15.50 US$ by February 2024.
- FCFE Per Share Performance
- FCFE per share demonstrates significant instability, oscillating between positive and negative territory every fiscal year. Positive cash flows were recorded in 2019 (0.54 US$), 2021 (0.36 US$), and 2023 (0.16 US$), while substantial outflows occurred in 2020 (-3.48 US$), 2022 (-2.71 US$), and 2024 (-0.77 US$).
- P/FCFE Ratio Interpretation
- During years of positive cash flow, the P/FCFE ratio underwent an extreme expansion. The ratio rose from 4.72 in 2019 to 125.86 in 2021 and 145.73 in 2023. This massive increase in the multiple suggests that the market valuation shifted from being grounded in current cash flow to reflecting speculative expectations or non-fundamental drivers.
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