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DCF Valuation
Base-case fair value
$57.71
Intrinsic $76.95 · 25% MOS
Current price: $23.17
Base-case summary
Our base-case DCF for GameStop Corp. (GME) projects 10 years of free cash flow growth at 20.0% for years 1–5 and 10.0% for years 6–10, anchored to 94.0% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $741M in trailing free cash flow, this produces an intrinsic value of $76.95 per share. A 25% safety margin gives a fair value of $57.71, suggesting the stock is currently 149% undervalued against the $23.17 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$741M
Cash & equivalents
$8.4B
Total debt
$173M
Shares outstanding
592M