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, particularly when considering its high P/E ratio of 99, which significantly exceeds the peer average P/E of approximately 42.56. Additionally, the PEG ratio stands at a low 0.14, suggesting that the stock may not be justified by its growth prospects, while the EV to EBITDA ratio of 538.38 further emphasizes the overvaluation compared to industry norms.
In terms of peer comparison, GameStop's valuation metrics are notably higher than its competitors, with the EV to EBIT at -376.16 and EV to Sales at 2.25, indicating inefficiencies in generating earnings relative to its enterprise value. The stock has underperformed against the S&P 500, with a year-to-date return of -26.39% compared to the index's 13.30%, reinforcing the notion that GameStop is currently overvalued given its financial metrics and market performance.