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) | $30.49 | |||||||||
| No. shares of common stock outstanding | 351,217,517 | |||||||||
| Growth rate (g) | -41.28% | |||||||||
| Earnings per share (EPS) | $0.02 | |||||||||
| Next year expected EPS | $0.01 | |||||||||
| Operating profit per share | $-0.10 | |||||||||
| Sales per share | $15.01 | |||||||||
| Book value per share (BVPS) | $3.81 | |||||||||
| Valuation Ratios (Price Multiples) | ||||||||||
| Price to earnings (P/E) | 1,598.30 | 37.57 | 23.49 | 17.14 | 28.33 | 32.69 | 34.62 | |||
| Price to next year expected earnings | 2,722.10 | 32.09 | 4.83 | 4.69 | 20.51 | 26.23 | 28.40 | |||
| Price to sales (P/S) | 2.03 | 3.49 | 2.18 | 1.42 | 2.44 | 3.04 | 3.05 | |||
| Price to book value (P/BV) | 8.00 | 7.78 | 52.39 | — | 16.42 | 10.14 | 9.90 | |||
Based on: 10-K (reporting date: 2024-02-03).
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: 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).
- Price to Earnings (P/E) Ratio
- The Price to Earnings ratio is available only for the most recent period ending February 3, 2024, with a notably high value of 707.62. This extremely elevated P/E ratio suggests the stock price is very high relative to earnings, which could indicate market expectations of significant future growth or possibly an overvaluation at this point.
- Price to Operating Profit (P/OP) Ratio
- There is no available data for the Price to Operating Profit ratio across all periods, hence no trend or insight can be derived.
- Price to Sales (P/S) Ratio
-
The Price to Sales ratio exhibits considerable fluctuation over the six-year period. It started at a low value of 0.12 in February 2019, decreased further to 0.04 in February 2020, then surged dramatically to 2.5 by January 2021. Following that peak, it declined steadily to 1.11 in January 2022, slightly increased to 1.19 in January 2023, and then fell again to 0.9 in February 2024. This pattern indicates volatile valuation relative to sales, reflecting changing market perceptions or sales performance over time.
- Price to Book Value (P/BV) Ratio
-
The Price to Book Value ratio also displays significant volatility. It began at 0.77 in February 2019 and decreased to 0.45 in February 2020, indicating the stock was trading below book value. In January 2021, the ratio spiked sharply to 29.11, suggesting a period of very high market valuation relative to the company's book value. Afterwards, it fell to 4.18 in January 2022, rose to 5.33 in January 2023, and declined again to 3.54 in February 2024. These swings suggest volatile market sentiment or changes in the company's asset base and perceived value.
Price to Earnings (P/E)
GameStop Corp., historical P/E 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$) | |||||||
| Net income (loss) (in thousands) | 6,700) | (313,100) | (381,300) | (215,300) | (470,900) | (673,000) | |
| Earnings per share (EPS)2 | 0.02 | -1.03 | -1.25 | -0.77 | -1.83 | -1.65 | |
| Share price1, 3 | 15.50 | 23.15 | 21.93 | 45.44 | 1.06 | 2.53 | |
| Valuation Ratio | |||||||
| P/E ratio4 | 707.62 | — | — | — | — | — | |
| Benchmarks | |||||||
| P/E Ratio, Competitors5 | |||||||
| Amazon.com Inc. | 40.99 | 58.66 | — | 48.08 | 78.20 | — | |
| Home Depot Inc. | 24.80 | 17.09 | 19.94 | 24.51 | 17.38 | — | |
| Lowe’s Cos. Inc. | 18.81 | 17.65 | 17.84 | 22.36 | 11.96 | — | |
| TJX Cos. Inc. | 24.63 | 25.22 | 22.20 | 881.78 | 17.13 | — | |
| P/E Ratio, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 35.33 | 39.66 | 63.32 | 40.84 | 49.11 | — | |
| P/E Ratio, Industry | |||||||
| Consumer Discretionary | 38.71 | 33.07 | 44.76 | 38.75 | 72.10 | — | |
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 2024 Calculation
EPS = Net income (loss) ÷ No. shares of common stock outstanding
= 6,700,000 ÷ 305,873,200 = 0.02
3 Closing price as at the filing date of GameStop Corp. Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= 15.50 ÷ 0.02 = 707.62
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited significant volatility over the examined period. Starting at $2.53 in early 2019, it declined to $1.06 by early 2020. This was followed by a sharp increase to $45.44 in early 2021, likely reflecting an extraordinary market event or speculative activity. Subsequently, the share price decreased to $21.93 in early 2022 and slightly increased to $23.15 in early 2023 before falling to $15.50 by early 2024. Despite fluctuations, the share price in 2024 remains considerably higher than the level in 2019 and 2020.
- Earnings per Share (EPS)
- The EPS values have been predominantly negative during the period from 2019 through 2023, indicating recurring net losses. Starting at negative $1.65 in early 2019, the losses deepened slightly in 2020 to negative $1.83. An improvement was observed in 2021, with EPS rising to negative $0.77, but losses increased again in 2022 and 2023 to negative $1.25 and negative $1.03 respectively. In 2024, profitability appears to have improved substantially, with EPS turning slightly positive at $0.02, suggesting possible operational recovery or a reduction in net losses.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio is provided only for the most recent period, registering a very high value of 707.62. This extremely elevated ratio typically indicates that the share price is high relative to earnings, which are minimal or just turning positive. It can imply strong market expectations of future growth, but it may also reflect speculative valuation or limited earnings compared to price.
Price to Operating Profit (P/OP)
GameStop Corp., historical P/OP calculation, comparison to benchmarks
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 305,873,200 | 304,675,439 | 305,356,992 | 279,743,312 | 257,831,968 | 409,069,740 | |
| Selected Financial Data (US$) | |||||||
| Operating loss (in thousands) | (34,500) | (311,600) | (368,500) | (237,800) | (399,600) | (702,000) | |
| Operating profit per share2 | -0.11 | -1.02 | -1.21 | -0.85 | -1.55 | -1.72 | |
| Share price1, 3 | 15.50 | 23.15 | 21.93 | 45.44 | 1.06 | 2.53 | |
| Valuation Ratio | |||||||
| P/OP ratio4 | — | — | — | — | — | — | |
| Benchmarks | |||||||
| P/OP Ratio, Competitors5 | |||||||
| Amazon.com Inc. | 35.40 | 48.43 | 86.50 | 64.48 | 72.85 | — | |
| Home Depot Inc. | 17.32 | 12.16 | 14.22 | 17.25 | 12.33 | — | |
| Lowe’s Cos. Inc. | 12.58 | 11.18 | 12.45 | 13.52 | 8.11 | — | |
| TJX Cos. Inc. | 19.01 | 18.15 | 15.32 | 137.02 | 12.69 | — | |
| P/OP Ratio, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 28.43 | 30.02 | 30.89 | 39.89 | 39.83 | — | |
| P/OP Ratio, Industry | |||||||
| Consumer Discretionary | 30.92 | 28.71 | 26.77 | 40.49 | 58.11 | — | |
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 2024 Calculation
Operating profit per share = Operating loss ÷ No. shares of common stock outstanding
= -34,500,000 ÷ 305,873,200 = -0.11
3 Closing price as at the filing date of GameStop Corp. Annual Report.
4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 15.50 ÷ -0.11 = —
5 Click competitor name to see calculations.
The financial data over the examined periods indicates several notable trends for the company.
- Share Price (US$)
- The share price experienced a significant increase from February 1, 2020, to January 30, 2021, rising sharply from 1.06 to 45.44 US$. Following this peak, there was a marked decline over the next three years, with the share price decreasing to 21.93 US$ (Jan 29, 2022), then showing a slight increase to 23.15 US$ (Jan 28, 2023), and further falling to 15.5 US$ by February 3, 2024. Overall, there is a notable volatility and a substantial drop from the peak share price.
- Operating Profit Per Share (US$)
- This metric reveals an ongoing pattern of operating losses per share, though the negative amounts have gradually improved over time. Beginning with -1.72 US$ in February 2019, the operating loss per share decreased steadily to -0.85 US$ by January 2021. After a slight increase in losses to -1.21 US$ (Jan 29, 2022), the losses again improved to -1.02 US$ (Jan 28, 2023), culminating in a near breakeven position of -0.11 US$ by February 3, 2024. This suggests a trend of operational performance moving towards profitability, although it remains negative.
- P/OP Ratio
- No data is provided for the Price to Operating Profit (P/OP) ratio, preventing any analysis of valuation relative to operating profit.
In summary, despite substantial share price volatility marked by a peak in early 2021, the company has demonstrated a gradual reduction in operating losses per share, indicating a potential improvement in operational efficiency. The current negative operating profit per share remains a concern, but the convergence towards a near breakeven level is a positive sign for future performance. The absence of P/OP data limits a deeper understanding of valuation dynamics related to operating profitability.
Price to Sales (P/S)
GameStop Corp., historical P/S 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$) | |||||||
| Net sales (in thousands) | 5,272,800) | 5,927,200) | 6,010,700) | 5,089,800) | 6,466,000) | 8,285,300) | |
| Sales per share2 | 17.24 | 19.45 | 19.68 | 18.19 | 25.08 | 20.25 | |
| Share price1, 3 | 15.50 | 23.15 | 21.93 | 45.44 | 1.06 | 2.53 | |
| Valuation Ratio | |||||||
| P/S ratio4 | 0.90 | 1.19 | 1.11 | 2.50 | 0.04 | 0.12 | |
| Benchmarks | |||||||
| P/S Ratio, Competitors5 | |||||||
| Amazon.com Inc. | 3.81 | 3.10 | 2.06 | 3.41 | 4.32 | — | |
| Home Depot Inc. | 2.46 | 1.86 | 2.17 | 2.39 | 1.77 | — | |
| Lowe’s Cos. Inc. | 1.68 | 1.17 | 1.56 | 1.46 | 0.71 | — | |
| TJX Cos. Inc. | 2.03 | 1.77 | 1.50 | 2.48 | 1.34 | — | |
| P/S Ratio, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 3.29 | 2.59 | 1.99 | 2.94 | 3.23 | — | |
| P/S Ratio, Industry | |||||||
| Consumer Discretionary | 3.41 | 2.62 | 2.27 | 3.56 | 3.77 | — | |
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 2024 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 5,272,800,000 ÷ 305,873,200 = 17.24
3 Closing price as at the filing date of GameStop Corp. Annual Report.
4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= 15.50 ÷ 17.24 = 0.90
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited significant volatility over the analyzed period. It started at $2.53 in early 2019, dropped to a low of $1.06 by early 2020, then surged dramatically to a peak of $45.44 in early 2021. Following this peak, it declined to $21.93 in early 2022, experienced a modest increase to $23.15 by early 2023, and then decreased again to $15.50 by early 2024. This pattern indicates a notable speculative spike around 2021, followed by a stabilization at a level higher than the pre-spike values but substantially lower than the peak.
- Sales per Share
- Sales per share demonstrated a generally declining trend across the period. Beginning at $20.25 in early 2019, sales per share rose to $25.08 in early 2020, but subsequently decreased each year to reach $17.24 by early 2024. The initial increase was followed by a continuous decline, suggesting diminishing sales generating capability on a per-share basis over the latter years despite the earlier growth.
- Price to Sales (P/S) Ratio
- The P/S ratio closely mirrored share price movements relative to sales per share. It started at 0.12 in early 2019, dropped to 0.04 in early 2020, then sharply increased to 2.5 in early 2021, coinciding with the peak in share price. Thereafter, it declined to 1.11 in early 2022, experienced a slight rise to 1.19 in early 2023, and fell again to 0.9 by early 2024. The P/S ratio values suggest that investor valuation of the company relative to sales was highest in early 2021 and then normalized somewhat after the peak, albeit remaining above the pre-2020 levels.
Price to Book Value (P/BV)
GameStop Corp., historical P/BV calculation, comparison to benchmarks
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 305,873,200 | 304,675,439 | 305,356,992 | 279,743,312 | 257,831,968 | 409,069,740 | |
| Selected Financial Data (US$) | |||||||
| Stockholders’ equity (in thousands) | 1,338,600) | 1,322,300) | 1,602,500) | 436,700) | 611,500) | 1,336,200) | |
| Book value per share (BVPS)2 | 4.38 | 4.34 | 5.25 | 1.56 | 2.37 | 3.27 | |
| Share price1, 3 | 15.50 | 23.15 | 21.93 | 45.44 | 1.06 | 2.53 | |
| Valuation Ratio | |||||||
| P/BV ratio4 | 3.54 | 5.33 | 4.18 | 29.11 | 0.45 | 0.77 | |
| Benchmarks | |||||||
| P/BV Ratio, Competitors5 | |||||||
| Amazon.com Inc. | 8.49 | 8.84 | 7.25 | 11.60 | 17.86 | — | |
| Home Depot Inc. | 359.76 | 187.12 | — | 95.58 | — | — | |
| Lowe’s Cos. Inc. | — | — | — | 90.79 | 25.96 | — | |
| TJX Cos. Inc. | 15.09 | 13.86 | 12.14 | 13.68 | 9.42 | — | |
| P/BV Ratio, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 10.96 | 11.65 | 11.07 | 14.31 | 20.07 | — | |
| P/BV Ratio, Industry | |||||||
| Consumer Discretionary | 11.07 | 10.11 | 9.55 | 13.30 | 18.17 | — | |
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 2024 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 1,338,600,000 ÷ 305,873,200 = 4.38
3 Closing price as at the filing date of GameStop Corp. Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= 15.50 ÷ 4.38 = 3.54
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited significant volatility over the analyzed periods. Initially, it decreased from $2.53 in early 2019 to $1.06 in early 2020. However, there was a dramatic increase in 2021, reaching a peak of $45.44. Following this peak, the share price declined to $21.93 in early 2022, slightly rose to $23.15 in early 2023, and then decreased again to $15.50 by early 2024. This pattern indicates a substantial spike in 2021, followed by a general downward adjustment in subsequent years.
- Book Value per Share (BVPS)
- The book value per share demonstrated a fluctuating trend with an overall decline from 2019 through 2021. It decreased from $3.27 in 2019 to $1.56 in 2021, suggesting a reduction in net asset value per share. From 2021 onwards, BVPS increased significantly to $5.25 in 2022 but then showed a moderate decline to $4.34 in 2023, remaining relatively stable at $4.38 in 2024. This indicates some recovery in net assets per share following the low point in 2021.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio exhibits a highly volatile pattern consistent with movements in share price relative to book value. Starting from a ratio of 0.77 in 2019, it dropped to 0.45 in 2020, before surging dramatically to 29.11 in 2021. This surge reflects an extraordinary elevation in market valuation compared to book value during that year. After 2021, the ratio decreased to 4.18 in 2022, then increased slightly to 5.33 in 2023, and decreased again to 3.54 in 2024. Overall, the ratio remains elevated relative to earlier years, indicating market optimism or speculative valuation despite a stabilization in book value.