Complete GAME Stock Valuation Analysis
Comprehensive intrinsic value analysis using 2 different methodologies
GAME DCF Analysis
GAME (Engine Gaming and Media, Inc.) discounted cash flow analysis with multiple scenarios, growth assumptions, and terminal value calculations
Financial Projections
| Metrics | 2021 (Historical) | 2022 (Historical) | 2023 (Historical) | 2024 (Projected) | 2025 (Projected) | 2026 (Projected) | 2027 (Projected) | 2028 (Projected) |
|---|---|---|---|---|---|---|---|---|
| Revenue | $33.3M | $28.1M | $52.0M | $65.0M | $81.2M | $101.6M | $126.9M | $158.7M |
| Revenue Growth % | - | -15.8% | 85.2% | 25.0% | 25.0% | 25.0% | 25.0% | 25.0% |
| EBIT | $-22.5M | $-17.2M | $-30.7M | $3.2M | $4.1M | $5.1M | $6.3M | $7.9M |
| EBIT Margin % | -67.6% | -61.2% | -59.0% | 5.0% | 5.0% | 5.0% | 5.0% | 5.0% |
| Tax Rate % | 25.0% | 25.0% | 25.0% | 25.0% | 25.0% | 25.0% | 25.0% | 25.0% |
| NOPAT | $-16.9M | $-12.9M | $-23.0M | $2.4M | $3.0M | $3.8M | $4.8M | $6.0M |
| NOPAT Margin % | -50.7% | -45.9% | -44.2% | 3.8% | 3.8% | 3.8% | 3.8% | 3.8% |
| Capex | $188.2K | $31.3K | $2.2K | $1.5M | $1.8M | $2.1M | $2.5M | $3.0M |
| Capex / Revenue % | 0.6% | 0.1% | 0.0% | 2.3% | 2.2% | 2.1% | 2.0% | 1.9% |
| Depreciation | $3.5M | $2.7M | $3.6M | $5.9M | $7.3M | $9.2M | $11.4M | $14.3M |
| D&A / Revenue % | 10.5% | 9.6% | 7.0% | 9.0% | 9.0% | 9.0% | 9.0% | 9.0% |
| Change in NWC | $28.7M | $513.7K | $-13.5M | $594.5K | $594.5K | $594.5K | $594.5K | $594.5K |
| NWC Change / Revenue % | 86.1% | 1.8% | -26.0% | 0.9% | 0.7% | 0.6% | 0.5% | 0.4% |
| Unlevered FCF | $-42.3M | $-10.8M | $-5.9M | $6.2M | $8.0M | $10.3M | $13.1M | $16.7M |
| UFCF % Chg. | - | 74.6% | 45.5% | 206.0% | 28.9% | 28.2% | 27.7% | 27.3% |
| FCF / Revenue % | -126.9% | -38.3% | -11.3% | 9.6% | 9.9% | 10.1% | 10.3% | 10.5% |
| Discount Factor | - | - | - | 0.938 | 0.880 | 0.826 | 0.775 | 0.727 |
| Present Value of FCF | - | - | - | $5.8M | $7.0M | $8.5M | $10.2M | $12.1M |
| Sum of PV of UFCF | - | - | - | $5.8M | $12.9M | $21.4M | $31.5M | $43.7M |
WACC Calculation
Weighted Average Cost of Capital used for discounting cash flows.
| WACC Calculation | Value |
|---|---|
| Cost of Debt | 6.9% |
| Tax Rate | 25.0% |
| After Tax Cost of Debt | 5.2% |
| Risk Free Rate | 4.37% |
| Market Risk Premium | 4.3% |
| Beta | 0.67 |
| Cost of Equity | 7.3% |
| Total Debt | $15.8M |
| Market Cap | $33.7M |
| Total Capital | $49.5M |
| Debt Weighting | 32.0% |
| Equity Weighting | 68.0% |
| WACC | 6.6% |
Terminal Value
Choose between perpetuity growth or exit multiple methods.
| Terminal Value Calculation | Value |
|---|---|
| Terminal Growth Rate | 2.5% |
| Final Year FCF | $16.7M |
| Terminal Value | $419.4M |
| PV of Terminal Value | $304.9M |
| Cumulative PV of UFCF | $43.7M |
| Net Debt | $12.9M |
| Equity Value | $335.7M |
| Shares Outstanding | 11.1M |
| Implied Share Price | $30 |
| Current Share Price | $1 |
| Implied Upside/(Downside) | +3390.6% |
Valuation Summary
$30.19
Implied Price
$0.86
Current Price
+3390.6%
Upside/Downside
6.6%
WACC
GAME Peer Valuation Analysis
Relative valuation based on comparable company trading multiples
Peer Valuation Analysis
Fair Value Range Analysis
Based on median multiples from 4 peer companies in Technology
P/E Ratio
$-23.90
-2863.2%
Peer Median: 18.6x
EV/EBITDA
$0.00
-100.0%
Peer Median: 33.2x
P/S Ratio
$13.10
+1414.9%
Peer Median: 5.7x
Interpretation: Each multiple provides a different perspective on fair value. Consider which multiple is most relevant for GAME's business model and current situation.
Multiple Comparison
| Multiple | GAME Current | Peer Median | Peer Average | Premium/Discount | Assessment |
|---|---|---|---|---|---|
| P/E Ratio | -0.7x | 18.6x | 18.6x | -103.6% | Undervalued |
| EV/EBITDA | Infinityx | 33.2x | 23.4x | Infinity% | Overvalued |
| P/S Ratio | 0.4x | 5.7x | 6.0x | -93.4% | Undervalued |
Peer Companies
Click any company to view their valuation
| Company | Market Cap | P/E Ratio | EV/EBITDA | P/S Ratio |
|---|---|---|---|---|
| $0.03B | 0.0x | 33.2x | 0.1x | |
| $0.03B | 0.0x | 0.0x | 0.4x | |
| $0.02B | 0.0x | 0.0x | 17.7x | |
| $2049.44B | 18.6x | 13.7x | 5.7x |