GameStop is a multichannel video game, consumer electronics and wireless services retailer. The company was founded in 1994 and is based in Grapevine, Texas.
GME Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for GME, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that GameStop Corp ranked in the 56th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 56%. The most interesting components of our discounted cash flow analysis for GameStop Corp ended up being:
Interest coverage, a measure of earnings relative to interest payments, is -5.23 -- which is good for besting only 16.52% of its peer stocks (US stocks in the Consumer Cyclical sector with positive cash flow).
44% of the company's capital comes from equity, which is greater than merely 22.66% of stocks in our cash flow based forecasting set.
GameStop Corp's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as GME, try SCI, VIAC, ETH, IP, and MDP.
Few sub-$1 billion stocks generate as much passion on both sides as GameStop (GME), recently inflamed by the active presence of Ryan Cohen and being the most heavily shorted stock on the street. I'm going to generally avoid both these topics as they've been covered extensively already. Looking at the...
Kingdom Capital on Seeking Alpha | October 1, 2020
PS5 preorder customers are being told that they might not receive their consoles until 2021. GameStop Ireland is the latest retailer to tell customers that placed PS5 or PS5 Digital Edition preorders that they won't get their console on time when it launches in November. There's a chance that more PS5 preorders could become available within the next month. At long last, Sony announced the price and release date of the PlayStation 5 on Wednesday, September 16th. The company also revealed that preorders for its next-generation console would begin on Thursday, September 17th, but on Wednesday evening, preorders suddenly began springing up without any notice. It was an unmitigated disaster as websites were overwhelmed and PS5 consoles went in and out of stock all night. Sony issued an apolo...
SUMMIT, N.J.--(BUSINESS WIRE)--ETF Managers Group LLC (“ETFMG®”), the leading thematic ETF issuer behind the first exchange-traded product to target the video game industry, the Wedbush ETFMG Video Game Tech ETF (NYSE Arca: GAMR®), is pleased to announce the largest contributors by segment to the GAMR® index performance during the Q3 2020 rebalance. Netmarble, Advanced Micro Devices, Sohu and GameStop made the largest contributions to Pure-Play, Diversified, Non-Pure Play, and Microcap segments
GameStop Corp.'s (GME) stock is up over 100% over the last eight weeks, impressive performance compared to both the broader market as well as the retail sector. And now with the markets taking a breather, investors are bound to question whether it's time to book profits. The market, fearful of...