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Is this Large Market Cap Stock target price reasonable for GameStop Corp. (NYSE:GME)?

The company in question is, GameStop Corp. (NYSE:GME) currently with a stock price of 25.28 (-0.75% today). The market cap for GameStop Corp. is 2648.37, and is in the sector Services, and Electronics Stores industry. The target price for GameStop Corp. is 34.82. Currently GameStop Corp. is trading with a P/E of 6.74, and a forward P/E of 6.02. Average volume for GameStop Corp. is 2596.86 and so far today it is 2018672.

Performance in the last year for GameStop Corp. has been -37.94%. For EPS growth, GameStop Corp. has seen a growth of 8.70%, and is looking to grow in the next year to 6.12%. More long term stats show that EPS growth has been 7.30% over the last five years and could be 10.70% for the next five years. GameStop Corp. has seen sales growth quarter over quarter at -7.40%, with EPS growth quarter over quarter at 13.30%. The 20-day simple moving average is -11.11%, with the 200-day simple moving average coming to -10.81%.

Since the IPO date for GameStop Corp. on the 2/13/2002, GameStop Corp. has seen performance year to date to be -5.69%. With GameStop Corp. trading at 25.28, the dividend yield is 5.81%, and the EPS is 3.78.

So could GameStop Corp., be undervalued? Well as said before P/E is 6.74. The PEG is 0.63, P/S is 0.29 and the P/B is at 1.23. The P/cash is 9.15, with P/free cash flow at *TBA.

GameStop Corp. ability to deal with debt shows that the current ratio is 1.6, and the quick ratio is 0.6. This is with long term debt/equity at 0.38, and total debt/equity at 0.38.

In terms of margins, GameStop Corp. has a gross margin of 32.70%, an operating margin of 7.10% and a profit margin of 4.30%.Payout ratio for GameStop Corp. is 38.30%. Return on assets come to 9.00% with return on investment coming to 17.50%.

Insider ownership for GameStop Corp., is at 1.80% and institutional ownership comes to 95.00%. Outstanding shares are at 103.98. While shares float is 101.81. The float short is currently 29.79%, and short ratio is 11.68.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

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