DCF Tool

GME

Gamestop Corporation – Electronics Stores
GameStop Corporation, a Fortune 500 company headquartered in Grapevine, Texas, is a leading specialty retailer offering games and entertainment products through its e-commerce properties and thousands of stores.
Analysis Results
Intrinsic Value $9.67
Latest Price $95.66
Relative Value 889% overvalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of -12.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 15.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -12.4%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2023 160 139
2024 140 105
2025 123 80.0
2026 107 60.8
2027 94.1 46.2
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 722 million. This corresponds to a present value of 307 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 431 million. Adding in the terminal value gives a total present value of 738 million.

There are presently 76.3 million outstanding shares, so the intrinsic value per share is 9.67.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,598,800,000
Current Cash 1,271,400,000
Current Liabilities 1,354,700,000
Current Debt 4,100,000
Non-Cash Working Capital (NCWC) -23,200,000
Change in NCWC 130,100,000
EBIT -361,800,000
Tax Provision -14,100,000
Depreciation and Amortization 77,200,000
Capital Expenditure -62,000,000
Unlevered Free Cash Flow -216,500,000
Current Assets 1,551,200,000
Current Cash 508,500,000
Current Liabilities 1,342,700,000
Current Debt 146,700,000
Non-Cash Working Capital (NCWC) -153,300,000
Change in NCWC -49,900,000
EBIT -254,700,000
Tax Provision -55,300,000
Depreciation and Amortization 80,700,000
Capital Expenditure -60,000,000
Unlevered Free Cash Flow -283,900,000
Current Assets 1,633,700,000
Current Cash 499,400,000
Current Liabilities 1,237,700,000
Current Debt 0
Non-Cash Working Capital (NCWC) -103,400,000
Change in NCWC 225,200,000
EBIT -14,000,000
Tax Provision 37,600,000
Depreciation and Amortization 96,200,000
Capital Expenditure -78,500,000
Unlevered Free Cash Flow 228,900,000
Current Assets 3,127,700,000
Current Cash 1,624,400,000
Current Liabilities 2,181,100,000
Current Debt 349,200,000
Non-Cash Working Capital (NCWC) -328,600,000
Change in NCWC -87,300,000
EBIT 313,900,000
Tax Provision 41,700,000
Depreciation and Amortization 126,900,000
Capital Expenditure -93,700,000
Unlevered Free Cash Flow 259,800,000
Current Assets 2,538,700,000
Current Cash 864,400,000
Current Liabilities 1,915,600,000
Current Debt 0
Non-Cash Working Capital (NCWC) -241,300,000
Change in NCWC 48,900,000
EBIT 526,400,000
Tax Provision 45,600,000
Depreciation and Amortization 151,900,000
Capital Expenditure -113,400,000
Unlevered Free Cash Flow 314,872,976
Current Assets 2,140,700,000
Current Cash 669,400,000
Current Liabilities 1,761,500,000
Current Debt 0
Non-Cash Working Capital (NCWC) -290,200,000
Change in NCWC 15,400,000
EBIT 591,500,000
Tax Provision 151,500,000
Depreciation and Amortization 166,700,000
Capital Expenditure -142,700,000
Unlevered Free Cash Flow 453,344,521
Current Assets 1,938,800,000
Current Cash 450,400,000
Current Liabilities 1,794,400,000
Current Debt 400,000
Non-Cash Working Capital (NCWC) -305,600,000
Change in NCWC -123,400,000
EBIT 652,800,000
Tax Provision 222,400,000
Depreciation and Amortization 158,200,000
Capital Expenditure -173,200,000
Unlevered Free Cash Flow 282,181,957
Current Assets 2,062,500,000
Current Cash 610,100,000
Current Liabilities 1,639,700,000
Current Debt 5,100,000
Non-Cash Working Capital (NCWC) -182,200,000
Change in NCWC 128,000,000
EBIT 620,500,000
Tax Provision 215,200,000
Depreciation and Amortization 156,500,000
Capital Expenditure -159,600,000
Unlevered Free Cash Flow 525,883,971
Current Assets 1,949,600,000
Current Cash 536,200,000
Current Liabilities 1,726,000,000
Current Debt 2,400,000
Non-Cash Working Capital (NCWC) -310,200,000
Change in NCWC 30,000,000
EBIT 602,200,000
Tax Provision 214,600,000
Depreciation and Amortization 169,200,000
Capital Expenditure -125,600,000
Unlevered Free Cash Flow 448,598,663
Current Assets 2,010,900,000
Current Cash 635,800,000
Current Liabilities 1,715,300,000
Current Debt 0
Non-Cash Working Capital (NCWC) -340,200,000
Change in NCWC -48,600,000
EBIT 639,100,000
Tax Provision 224,900,000
Depreciation and Amortization 178,900,000
Capital Expenditure -139,600,000
Unlevered Free Cash Flow 629,800,000

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