Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
GameStop Corp., current price multiples
| GameStop Corp. | Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | TJX Cos. Inc. | Consumer Discretionary Distribution & Retail | Consumer Discretionary | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||
| Current share price (P) | $30.35 | |||||||||
| No. shares of common stock outstanding | 304,516,136 | |||||||||
| Earnings per share (EPS) | $-1.25 | |||||||||
| Operating profit per share | $-1.21 | |||||||||
| Sales per share | $19.74 | |||||||||
| Book value per share (BVPS) | $5.26 | |||||||||
| Valuation Ratios (Price Multiples) | ||||||||||
| Price to sales (P/S) | 1.54 | 3.20 | 2.18 | 1.53 | 1.97 | 2.98 | 2.81 | |||
| Price to book value (P/BV) | 5.77 | 9.12 | 319.05 | — | 14.60 | 16.58 | 11.69 | |||
Based on: 10-K (reporting date: 2022-01-29).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
GameStop Corp., historical price multiples
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).
| Valuation ratio | Description | The company |
|---|---|---|
| P/S ratio | An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. | GameStop Corp. P/S ratio increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level. |
| P/BV ratio | The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. | GameStop Corp. P/BV ratio increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level. |
Price to Earnings (P/E)
GameStop Corp., historical P/E calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 305,356,992 | 279,743,312 | 257,831,968 | 409,069,740 | 406,333,276 | 404,843,424 | |
| Selected Financial Data (US$) | |||||||
| Net income (loss) (in thousands) | (381,300) | (215,300) | (470,900) | (673,000) | 34,700) | 353,200) | |
| Earnings per share (EPS)2 | -1.25 | -0.77 | -1.83 | -1.65 | 0.09 | 0.87 | |
| Share price1, 3 | 21.93 | 45.44 | 1.06 | 2.53 | 3.21 | 5.21 | |
| Valuation Ratio | |||||||
| P/E ratio4 | — | — | — | — | 37.59 | 5.97 | |
| Benchmarks | |||||||
| P/E Ratio, Competitors5 | |||||||
| Amazon.com Inc. | — | 48.08 | 78.20 | 86.30 | — | — | |
| Home Depot Inc. | 19.94 | 24.51 | 17.38 | 18.87 | — | — | |
| Lowe’s Cos. Inc. | 17.84 | 22.36 | 11.96 | 37.80 | — | — | |
| TJX Cos. Inc. | 22.20 | 881.78 | 17.13 | 21.11 | — | — | |
| P/E Ratio, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 63.32 | 40.84 | 49.11 | 48.49 | — | — | |
| P/E Ratio, Industry | |||||||
| Consumer Discretionary | 49.46 | 42.84 | 90.96 | 37.86 | — | — | |
Based on: 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).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
EPS = Net income (loss) ÷ No. shares of common stock outstanding
= -381,300,000 ÷ 305,356,992 = -1.25
3 Closing price as at the filing date of GameStop Corp. Annual Report.
4 2022 Calculation
P/E ratio = Share price ÷ EPS
= 21.93 ÷ -1.25 = —
5 Click competitor name to see calculations.
Price to Operating Profit (P/OP)
GameStop Corp., historical P/OP calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 305,356,992 | 279,743,312 | 257,831,968 | 409,069,740 | 406,333,276 | 404,843,424 | |
| Selected Financial Data (US$) | |||||||
| Operating earnings (loss) (in thousands) | (368,500) | (237,800) | (399,600) | (702,000) | 135,600) | 557,700) | |
| Operating profit per share2 | -1.21 | -0.85 | -1.55 | -1.72 | 0.33 | 1.38 | |
| Share price1, 3 | 21.93 | 45.44 | 1.06 | 2.53 | 3.21 | 5.21 | |
| Valuation Ratio | |||||||
| P/OP ratio4 | — | — | — | — | 9.62 | 3.78 | |
| Benchmarks | |||||||
| P/OP Ratio, Competitors5 | |||||||
| Amazon.com Inc. | 86.50 | 64.48 | 72.85 | 68.77 | — | — | |
| Home Depot Inc. | 14.22 | 17.25 | 12.33 | 13.51 | — | — | |
| Lowe’s Cos. Inc. | 12.45 | 13.52 | 8.11 | 21.77 | — | — | |
| TJX Cos. Inc. | 15.32 | 137.02 | 12.69 | 15.31 | — | — | |
| P/OP Ratio, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 30.89 | 39.89 | 39.83 | 35.55 | — | — | |
| P/OP Ratio, Industry | |||||||
| Consumer Discretionary | 27.99 | 43.80 | 68.07 | 29.55 | — | — | |
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
Operating profit per share = Operating earnings (loss) ÷ No. shares of common stock outstanding
= -368,500,000 ÷ 305,356,992 = -1.21
3 Closing price as at the filing date of GameStop Corp. Annual Report.
4 2022 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 21.93 ÷ -1.21 = —
5 Click competitor name to see calculations.
Price to Sales (P/S)
GameStop Corp., historical P/S calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 305,356,992 | 279,743,312 | 257,831,968 | 409,069,740 | 406,333,276 | 404,843,424 | |
| Selected Financial Data (US$) | |||||||
| Net sales (in thousands) | 6,010,700) | 5,089,800) | 6,466,000) | 8,285,300) | 9,224,600) | 8,607,900) | |
| Sales per share2 | 19.68 | 18.19 | 25.08 | 20.25 | 22.70 | 21.26 | |
| Share price1, 3 | 21.93 | 45.44 | 1.06 | 2.53 | 3.21 | 5.21 | |
| Valuation Ratio | |||||||
| P/S ratio4 | 1.11 | 2.50 | 0.04 | 0.12 | 0.14 | 0.25 | |
| Benchmarks | |||||||
| P/S Ratio, Competitors5 | |||||||
| Amazon.com Inc. | 2.06 | 3.41 | 4.32 | 3.56 | — | — | |
| Home Depot Inc. | 2.17 | 2.39 | 1.77 | 1.94 | — | — | |
| Lowe’s Cos. Inc. | 1.56 | 1.46 | 0.71 | 1.23 | — | — | |
| TJX Cos. Inc. | 1.50 | 2.48 | 1.34 | 1.66 | — | — | |
| P/S Ratio, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 1.99 | 2.94 | 3.23 | 2.73 | — | — | |
| P/S Ratio, Industry | |||||||
| Consumer Discretionary | 2.26 | 3.57 | 3.77 | 2.31 | — | — | |
Based on: 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).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 6,010,700,000 ÷ 305,356,992 = 19.68
3 Closing price as at the filing date of GameStop Corp. Annual Report.
4 2022 Calculation
P/S ratio = Share price ÷ Sales per share
= 21.93 ÷ 19.68 = 1.11
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/S ratio | An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. | GameStop Corp. P/S ratio increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level. |
Price to Book Value (P/BV)
GameStop Corp., historical P/BV calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 305,356,992 | 279,743,312 | 257,831,968 | 409,069,740 | 406,333,276 | 404,843,424 | |
| Selected Financial Data (US$) | |||||||
| Stockholders’ equity (in thousands) | 1,602,500) | 436,700) | 611,500) | 1,336,200) | 2,214,500) | 2,254,100) | |
| Book value per share (BVPS)2 | 5.25 | 1.56 | 2.37 | 3.27 | 5.45 | 5.57 | |
| Share price1, 3 | 21.93 | 45.44 | 1.06 | 2.53 | 3.21 | 5.21 | |
| Valuation Ratio | |||||||
| P/BV ratio4 | 4.18 | 29.11 | 0.45 | 0.77 | 0.59 | 0.94 | |
| Benchmarks | |||||||
| P/BV Ratio, Competitors5 | |||||||
| Amazon.com Inc. | 7.25 | 11.60 | 17.86 | 16.11 | — | — | |
| Home Depot Inc. | — | 95.58 | — | — | — | — | |
| Lowe’s Cos. Inc. | — | 90.79 | 25.96 | 24.01 | — | — | |
| TJX Cos. Inc. | 12.14 | 13.68 | 9.42 | 12.79 | — | — | |
| P/BV Ratio, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 11.07 | 14.31 | 20.07 | 19.77 | — | — | |
| P/BV Ratio, Industry | |||||||
| Consumer Discretionary | 9.38 | 12.86 | 16.57 | 11.85 | — | — | |
Based on: 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).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 1,602,500,000 ÷ 305,356,992 = 5.25
3 Closing price as at the filing date of GameStop Corp. Annual Report.
4 2022 Calculation
P/BV ratio = Share price ÷ BVPS
= 21.93 ÷ 5.25 = 4.18
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/BV ratio | The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. | GameStop Corp. P/BV ratio increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level. |