MeritValue

GameStop Corp.

GMEdata completeness 100%19 fiscal years on file
The thesis, from the filings

GameStop Corp. earns about 1% on invested capital, below its ~9% cost of capital, but has diluted owners by 89% over 5 years — no moat visible in the numbers. The estimate methods put fair value between $0.13 and $17.97 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025FY 2026
Revenue$6.01B1$5.93B2$5.27B3$3.82B3$3.63B3
Net income−$381.3M4−$313.1M5$6.7M6$131.3M6$418.4M6
Operating cash flow−$434.3M7$108.2M8−$203.7M9$145.7M9$614.8M9
Capital expenditure$62M10$55.9M11$34.9M12$16.1M12$17.5M12
Free cash flow (derived)−$496.3M7$52.3M8−$238.6M9$129.6M9$597.3M9
Total debt$93.3M13$50.3M14$39.3M15$27.2M16$4.16B16
Cash & equivalents$1.27B17$1.14B18$921.7M19$4.76B20$6.3B20
Diluted shares290.4M304.2M305.2M394.7M549.1M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$99.15
your share of equity
Profit it earned you last year
$7.62
Free cash flow it threw off
$10.88
Debt you’d be carrying
$75.84

10 shares is a claim on $99.15 of net worth that earned you $7.62 and generated $10.88 of cash last year, against $75.84 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
1% avg · 5y
FY22 -69%FY23 -99%FY24 7%FY25 144%FY26 20%

It earned about 1% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
+89% shares · 5y

Share count is up 89% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 4363% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $0.13 and $17.97 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$17.97
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth20.0%
  • fcfBase$129.6M
DCF · Growth Exit 5Y
$11.59
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth20.0%
  • fcfBase$129.6M
Earnings Power Value
$0.13
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$6.7M
  • growthAssumed0.0%
Graham Number
$13.11
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years20.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $11.59
The three cases
Bear0.0%$7.27
Base20.0%$11.59
Bull20.0%$11.59

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 20.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2022-01-29 · accession 0001326380-24-000012 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2023-01-28 · accession 0001628280-25-014731 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2024-02-03 · accession 0001326380-26-000013 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2022-01-29 · accession 0001326380-24-000012 (NetIncomeLoss)
  5. 10-K · period ending 2023-01-28 · accession 0001628280-25-014731 (NetIncomeLoss)
  6. 10-K · period ending 2024-02-03 · accession 0001326380-26-000013 (NetIncomeLoss)
  7. 10-K · period ending 2022-01-29 · accession 0001326380-24-000012 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2023-01-28 · accession 0001628280-25-014731 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2024-02-03 · accession 0001326380-26-000013 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-01-29 · accession 0001326380-24-000012 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2023-01-28 · accession 0001628280-25-014731 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2024-02-03 · accession 0001326380-26-000013 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2022-01-29 · accession 0001326380-22-000021 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2023-01-28 · accession 0001326380-24-000012 (LongTermDebtCurrent)
  15. 10-K · period ending 2024-02-03 · accession 0001628280-25-014731 (LongTermDebtCurrent)
  16. 10-K · period ending 2025-02-01 · accession 0001326380-26-000013 (LongTermDebtCurrent)
  17. 10-K · period ending 2022-01-29 · accession 0001326380-23-000019 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2023-01-28 · accession 0001326380-24-000012 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2024-02-03 · accession 0001628280-25-014731 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2025-02-01 · accession 0001326380-26-000013 (CashAndCashEquivalentsAtCarryingValue)