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    GameStop (GME) Stock Could Be 48% Undervalued Despite Ryan Cohen’s Stake Increase

    Simply Wall St·09/24/2026 09:22:24
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    GameStop has rallied over the past month and year to date, even though the share price is still down over the past five years, which puts fresh focus on whether that reset is in line with the cash the business is expected to produce. With insider buying back in the headlines, the question for you is whether the current market value matches what its cash flows can reasonably support.

    • Over the past five years the stock has fallen 44.3%, which makes the current rebound a test of whether the underlying cash generation story has really changed.
    • Ryan Cohen’s recent US$26.4 million share purchase and the company’s stronger profitability metrics may support expectations for healthier future cash flows and a different capital allocation profile.
    • Prefer to judge GameStop on earnings? See what GameStop's 13.7x P/E says about the price.

    The issue now is whether GameStop’s recent price level is justified by an intrinsic value estimate based on its future cash flows rather than the headlines around the stock.

    If you want more context around GameStop and insider-driven turnarounds, it can help to compare the company with other businesses that have been screened for our screener containing 16 high quality undiscovered gems.

    Is GameStop Still Cheap on Cash Flow?

    The Discounted Cash Flow (DCF) model here focuses on the cash that GameStop can return to shareholders over time. Over the last twelve months the retailer generated roughly $688.2 million in free cash flow, and the model assumes that this cash generation continues to grow rather than shrink, with higher near term growth tapering to more modest expansion further out.

    Those projections, when discounted back, put GameStop’s estimated intrinsic value substantially above the current share price of $24.20. Because Ryan Cohen’s recent US$26.4 million insider purchase came alongside stronger profitability metrics, that buying activity helps explain why some investors see the current price as not fully reflecting the cash flow profile implied by the DCF work. Find out what GameStop could be worth using our Discounted Cash Flow (DCF) estimate.

    The GameStop Narrative: What Would Justify Today's Price?

    Simply Wall St Narratives for GameStop pick up where the cash flow puzzle leaves off. They explain which paths for GameStop's future growth, profitability and earnings would need to occur for the stock to be worth much more or much less than today’s price. Instead of giving you just one number from a ratio or model, they lay out the future that number relies on so you can monitor whether it stays on track on the Community page.

    One of the top community narratives on GameStop: 89% undervalued

    "GameStop’s Q1 2025 financials, combined with an amazing shareholder community, just showed its takes-money-to-buy-whiskey strategy at work…"

    Discover why this Narrative puts GameStop at 89% undervalued.

    One more GameStop angle before you move on

    Cash flow models only tell part of the story, because the people setting priorities and how they are rewarded can pull the business in very different directions over time. See who runs GameStop and how they are paid.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.