Best Buy Co Inc vs Gamestop Corp

Best Buy Co Inc (BBY) is overvalued and Gamestop Corp (GME) is overvalued.

Both trade above our estimate of their intrinsic value. BBY is the closer of the two: -57%, against -66% for GME.

Values as of the 22 Sept 2026 close.

Best Buy Co Inc (BBY)

Discounting its cash flows at 10.1% (average of 3 methods) values the shares at $60.51; the price of $94.82 is 57% above that value, and 71% of that value comes from beyond year five.

Leak Score 59/100 on 3 of 12 signals

Gamestop Corp (GME)

Discounting its cash flows at 12.4% (average of 3 methods) values the shares at $14.47; the price of $24.03 is 66% above that value, and 64% of that value comes from beyond year five.

Leak Score 49/100 on 10 of 12 signals

MetricBBYGME
VerdictOvervaluedOvervalued
Price$94.82$24.03
Intrinsic value$60.51$14.47
Margin of safety-57%-66%
Leak Score59/100 (3/12)49/100 (10/12)
Market cap$19.9B$12.1B
Revenue growth, 5 years-2.5%-6.5%
Operating margin4.3%13.9%
Net margin3.0%25.2%
Return on equity43.1%15.8%
Debt to equity1.300.71
P/E15.8x15.9x
Forward P/E13.1x12.9x
P/B6.3x1.8x
Dividend yield4.1%

All stocks in Specialty Retail