If gme stock trading at $1000...their fundamentals should be look like?

If GameStop (GME) stock were to trade at $1,000, its fundamental metrics would likely need to align with a significantly higher valuation. Here's a hypothetical look at the fundamentals that could support such a price: 1. **Earnings Per Share (EPS)**: With a $1,000 stock price, EPS would need to be substantially higher to justify the valuation. Assuming GME maintains its current P/E ratio of approximately 48.43, EPS would need to be around $20.46 to achieve this price target. |code|Ticker|Name|Date|P/E(TTM)|P/S|Price to Book Ratio|market_code| |---|---|---|---|---|---|---|---| |GME|GME.N|GameStop|20240731|388.046229|2.7393828278492856|7.218251240392949|169| |GME|GME.N|GameStop|20240801|371.613746|2.623378967472783|6.912582021567309|169| |GME|GME.N|GameStop|20240802|360.658758|2.5460430605551148|6.708802542350217|169| |GME|GME.N|GameStop|20240805|353.469547|2.6210419022677223|6.575072259113999|169| |GME|GME.N|GameStop|20240806|364.253363|2.7010058925063984|6.775667683968325|169| |GME|GME.N|GameStop|20240807|356.550637|2.64388875662163|6.632385237643806|169| |GME|GME.N|GameStop|20240808|372.298433|2.7606615677638238|6.925318239018377|169| |GME|GME.N|GameStop|20240809|375.379524|2.7835084221177313|6.982631217548184|169| |GME|GME.N|GameStop|20240812|374.523665|2.7771620736860902|6.966710945734349|169| |GME|GME.N|GameStop|20240813|381.199361|2.8266635914528897|7.090889065882265|169| 2. **Revenue Growth**: GME's revenue would need to be significantly higher to support a $1,000 stock price. Assuming a P/S ratio of 2.75, total revenue would need to be approximately $1.77 billion to justify the valuation. 3. **Return on Equity (ROE)**: ROE would need to be significantly higher to support a higher stock price. Assuming GME maintains its current ROE of 0.9%, ROE would need to increase to around 18% to justify a $1,000 stock price. |code|Ticker|Name|Date|ROA|Diluted EPS|ROE(Average)|market_code| |---|---|---|---|---|---|---|---| |GME|GME.N|GameStop|2025 Q2|-1.761|0.04|-0.6117|169| |GME|GME.N|GameStop|2025 Q3|-2.3689|0.04|0|169| |GME|GME.N|GameStop|2025 Q4|-0.6104||4.1893|169| |GME|GME.N|GameStop|2026 Q1|-0.1286|0.09|0.9035|169| 4. **Free Cash Flow**: GME's free cash flow would need to be robust to support a higher stock price. Assuming GME maintains its current free cash flow of approximately $162.3 million, this would need to increase substantially to support a $1,000 stock price. |code|Ticker|Name|Date|Total Revenue|Operating Cash Flow|Net Income|market_code| |---|---|---|---|---|---|---|---| |GME|GME.N|GameStop|2025 Q2|7.983E8|6.86E7|1.48E7|169| |GME|GME.N|GameStop|2025 Q3|8.603E8|2.46E7|1.74E7|169| |GME|GME.N|GameStop|2025 Q4|1.2826E9|1.623E8|1.313E8|169| |GME|GME.N|GameStop|2026 Q1|7.324E8||4.48E7|169| 5. **Debt-to-Equity Ratio**: GME's debt-to-equity ratio would need to be managed effectively to support a higher stock price. Assuming GME maintains its current low debt-to-equity ratio of 0.3%, the company would need to continue to manage debt effectively to support a higher valuation. |code|Ticker|Name|Date|Free Cash Flow|Debt-to-Equity Ratio|market_code| |---|---|---|---|---|---|---| |GME|GME.N|GameStop|2025 Q2|-3.2200076588E9|0.005338321850618242|169| |GME|GME.N|GameStop|2025 Q3|-3.5644E9|0.004266833177229681|169| |GME|GME.N|GameStop|2025 Q4|-3.6521733214E9|0.0034281309586595807|169| |GME|GME.N|GameStop|2026 Q1|-5.2332768096E9|0.29688815815855957|169| **Challenges in Achieving a $1,000 Stock Price:** 1. **Market Conditions**: The video game industry is highly competitive, and GME faces significant challenges from digitalization and declining hardware and software sales. 2. **Financial Performance**: While GME has outperformed in the past, its financials show challenges, including a projected revenue decline in the fiscal year ending January 2025. 3. **Strategic Execution**: GME's success in the future will depend on its ability to execute on strategic initiatives, such as its Bitcoin investment and collectibles segment growth. In conclusion, for GME stock to trade at $1,000, the company would need to demonstrate substantial growth in revenue, EPS, and free cash flow, while maintaining a strong ROE and managing debt effectively. Achieving this price would require a combination of favorable market conditions, strong strategic execution, and robust financial performance.