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 an EV to EBITDA ratio of 538.38, which is significantly higher than typical industry metrics. Additionally, the PEG ratio stands at a low 0.14, suggesting that the stock may not be justified at its current price.
In comparison to its peers, GameStop's valuation ratios highlight a disparity, with its EV to EBIT at -376.16 and ROE at 2.72%, which further emphasizes its overvaluation relative to the industry. Notably, the company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -26.39% compared to the index's 13.30%, reinforcing the notion that the stock may not be a favorable investment at this time.