Is GameStop Corp. overvalued or undervalued?

As of 31 October 2025, the valuation grade for GameStop Corp. has moved from attractive to fair, indicating a shift in its perceived value. The company appears overvalued based on its current metrics, with a P/E ratio of 99, significantly higher than the peer average of approximately 42.56. Additionally, the EV to EBITDA ratio stands at 538.38, which is extraordinarily high, suggesting that the company's earnings potential is not being reflected in its market price. The PEG ratio of 0.14 indicates a low growth expectation relative to its price, further supporting the overvaluation thesis.
In comparison to its peers, GameStop's valuation metrics are concerning, particularly when looking at its EV to EBITDA ratio compared to the peer average of 69.81. The company's recent performance has also lagged behind the S&P 500, with a year-to-date return of -28.88% compared to the index's 16.30%. This underperformance, coupled with the high valuation ratios, reinforces the conclusion that GameStop Corp. is overvalued in its current market position.