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 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 EV to EBITDA ratio stands at an extreme 538.38, further suggesting that the stock may not be justified at its current price level. The PEG ratio of 0.14 does indicate potential growth, but the negative ROCE of -7.32% and a low ROE of 2.72% raise concerns about the company's profitability and efficiency.
In comparison to its peers, GameStop's valuation metrics highlight its overvaluation, especially when juxtaposed with the industry averages. The company has underperformed against the S&P 500 across multiple time frames, with a year-to-date return of -29.45% compared to the S&P 500's 16.30%, reinforcing the notion that the stock may not be a sound investment at this time.