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. Based on the current metrics, the company appears to be overvalued. The P/E ratio stands at 99, significantly higher than the peer average of approximately 42.56, while the EV to EBITDA ratio is an alarming 538.38, suggesting excessive valuation relative to earnings before interest, taxes, depreciation, and amortization. Additionally, the PEG ratio of 0.14 indicates a potential growth mispricing, yet the negative ROCE of -7.32% raises concerns about capital efficiency.
In comparison to peers in the Electronics & Appliances industry, GameStop's valuation ratios are notably higher, with its EV to Sales at 2.25 compared to the industry average. The company's recent performance has been lackluster, with a year-to-date return of -29.87% compared to the S&P 500's 16.30%, highlighting the disconnect between its market valuation and actual performance. Overall, these factors suggest that GameStop Corp. is currently overvalued in the market.