Is GameStop Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for GameStop Corp. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be overvalued, given its high P/E ratio of 99 compared to the peer average of approximately 42.56, and a PEG ratio of 0.14, which suggests that the stock may not be justified at its current price given its growth prospects. Additionally, the EV to EBITDA ratio of 538.38 highlights significant concerns about profitability relative to enterprise value.
In comparison to its peers, GameStop's valuation metrics are notably high, with the EV to EBIT at -376.16 and EV to Sales at 2.25, which further underscores the challenges it faces in generating earnings. While the stock has shown a remarkable 593.31% return over the past five years, it has underperformed against the S&P 500 in the year-to-date and three-year periods, with returns of -26.39% and -11.13%, respectively. This underperformance reinforces the notion that GameStop may be overvalued in the current market environment.