GMENEUTRAL

EV/EBITDA

13.2x

Higher than 55% of Consumer Cyclical sector peers

Updated 94h ago

Sector Performance

55th percentile

GME

13.2x

Sector Median

11.5x

Sector Avg

14.9x

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Deep Analysis

The current EV/EBITDA of 13.2x means GameStop's enterprise value (total company value including debt) is 13.2 times its earnings before interest, taxes, depreciation, and amortization—a measure of cash profit.

This ratio is above the Consumer Cyclical sector median of 11.2x, placing GameStop in the 55th percentile among sector peers, indicating it is slightly more expensive relative to its earnings. The year-over-year change is not available, but the quarter-over-quarter change shows a -54.0% decline from the prior quarter's 28.6x to the current 13.2x. A metric above the median combined with a sharp quarterly drop suggests that while the stock remains somewhat expensive historically, the compression in valuation could reflect improving fundamentals or reduced risk, yet also signals volatility. This mixed picture—level above peers but rapidly falling—does not clearly contradict the overall NEUTRAL verdict, as the decline may reduce overvaluation concerns without confirming a strong bullish case.

Frequently Asked Questions

What does the EV/EBITDA tell investors about GME?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

How does GME's EV/EBITDA compare to its sector?

GME's EV/EBITDA of 13.2x compares to a Consumer Cyclical sector median of 11.5x, placing it in the 55th percentile.

Who are GME's closest peers by EV/EBITDA?

The closest Consumer Cyclical peers by EV/EBITDA include: PDD (7.6x), PVH (7.2x), BBY (7.0x), BBWI (6.0x), ANF (5.7x).

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.