3 models fit GameStop Corporation Common Stock and they disagree: 0 of 3 land within 15% of the average.
Two or more of our models back this value.
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Valued as a cyclical company: P/E comparison, EV/EBITDA comparison, Discounted cash flow, and Graham number.
ACCE opinionGameStop Corporation Common Stock (GME)
Fair value (3 models)
$18.91
ACCE price target
$17.00
Rating
Overvalued
Horizon
12 months
Fair value published on 10 Oct 2026, 00:00 CEST; previously $19.50 since 4 Oct 2026, 00:00 CEST.
ACCE price target published on 18 Oct 2026, 01:52 CEST; previously $23.00 since 26 Sept 2026, 00:00 CEST.
Rating published on 18 Oct 2026, 16:04 CEST.
Price used: $24.82 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, EV/EBITDA comparison, Graham number, and P/E comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
31.3% above
-23.8% to fair value
ACCE score
59
out of 100
Analysts
0% buy
1 covering
P/E
16.3x
forward 13.3x
1-year return
+5.0%
Dividend yield
0.00%
GameStop Corporation Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
GameStop sells new and used video games, consoles, collectibles and trading cards through roughly 2,300 stores, plus an e-commerce site, and it is pushing toward a broader digital and collectibles business. Its structural problem is clear: revenue is shrinking at 18.7%, so any thesis has to rest on margins and capital allocation rather than top-line growth. The gross margin of 37.9% and operating margin of 20.0% are high for a retailer and point to a business that still earns well on what it sells, even as volume declines. At a 17.9x trailing and 14.6x forward multiple with a 15.8% return on equity, the stock is priced for a shrinking top line, so the bull case depends on margin durability and on cash returned to shareholders rather than a recovery in sales. The market is treating this as a run-off story, and the 62/100 score reflects that tension; it earns a deeper look mainly if the margins hold through the next two quarters.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Revenue collapse with valuation disconnect
Revenue down 18.7% YoY and 15.1% over 5 years, yet P/S of 3.8 and forward P/E of 14.3 imply growth recovery.
high
Profitability metrics lack credibility
Net margin 25.2% and ROE 15.8% are implausibly high for a retailer with collapsing revenue. Earnings up 64.5% YoY while sales fell 18.7% signals one-time items or accounting adjustments masking underlying weakness.
moderate
Score deterioration and growth deceleration
ACCE score fell 5 points in 90 days (67 to 62). Sequential revenue down 3.8% QoQ. Earnings surprise flat at 0.0% despite headline EPS growth.
AI research notes
AI-assisted·How I use AIWritten Oct 11, 2026 · figures from 2026-10-09 · prices to Oct 23, 2026
Why it could do well
Net margin of 25.2% shows the company extracts strong profit from each sales dollar despite revenue headwinds.
Forward P/E of 14.3x trades below the 17.4x sector median, suggesting the stock is cheaper than peers.
Free cash flow of $85M in the last twelve months provides a cash buffer to fund operations and strategic investments.
Why it could disappoint
Revenue fell 18.7% year over year and has declined 15.1% annually over five years with no recovery in sight.
Share count jumped 39.1% in the last fiscal year, diluting existing shareholders and eroding earnings per share.
Consensus fair value is $18.83 against a current price of $26.56, implying 29.1% downside from today's level.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Dec 8, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where GME's valuation models land
Price
$24.82
Model fair value
$18.91
Model range
$12.01 to $32.50
Fair value $18.91
Price $24.82
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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