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GameStop Corp

(GME) June 6, 2010


Figures in Millions except per share values
Company Overview Low Risk
GameStop Corp. (GameStop) is a retailer of video game products and personal 5.0
computer (PC) entertainment software. The Company sells new and used video game 4.0
hardware, video game software and accessories, as well as PC entertainment
software, and related accessories and other merchandise. As of January 30, 2010, the 3.0
Strong Moat High Growth
Company operated 6,450 stores in the United States, Australia, Canada and Europe, 2.0
primarily under the names GameStop and EB Games. GameStop also operates the 1.0
electronic commerce Website www.gamestop.com and publish Game Informer, a
multi-platform video game magazine in the United States based on circulation, with 0.0
approximately 4 million subscribers. During the fiscal year ended January 30, 2010
(fiscal 2009), GameStop operated its business in four segments: United States,
Canada, Australia and Europe. Good Financial
Under Valued
Health

Valuation Well Managed


Current Price $ 21.77 Margin of Safety
NCAV $ 1.10 -95%

Total Net Reprod. Cost $ 28.23 30%


5 Year Historical Price vs DCF Intrinsic Value
70
Earnings Power Value (EPV) $ 37.39 72%

Discounted Cash Flow (DCF) $ 50.56 132% 60


Ben Graham Formula $ 46.70 115%
50

Key Statistics Valuation Ratios 40


Market Cap (millions) $ 3,330.00 P/E (TTM) 9.8 30
52-Week High $ 28.62 P/S (TTM) 0.4
52-Week Low $ 17.12 P/B (MRQ) 1.3 20
% off 52-Week Low 27% P/Tang. BV (MRQ) 4.7
10
FCF/EV (TTM) 9.1%
Cash Flows P/FCF (TTM) 0.0 0
Free Cash Flow EV/Sales (TTM) 0.5 9/22/2003 9/22/2005 9/22/2007 9/22/2009
5 yr FCF Growth 27.7% EV/FCF (TTM) 11.0 Historical Price Intrinsic Value Buy Price
10 yr FCF Growth 37.5%
Margins & Profitability Balance Sheet
Effectiveness Gross Cash and Equiv $ 905.40
CROIC Gross Margin Short-Term Investments $ -
Avg 31.6% Operating Accts Rec $ 64.00
FCF/S Operating Margin Inventory $ 1,053.60
Avg 5.0% Net Profit Total Current Assets $ 2,127.30
ROA Net Margin Net PP&E $ 584.20
Avg 6.7% Intangibles $ 2,201.21
ROE Financial Strength (MRQ) Total Assets $ 5,195.10
Avg 15.0% Quick Ratio 0.5
Current Ratio 1.4 Total Current Liabilities $ 1,655.70
Efficiency LT Debt to Equity 16.7 Long-Term Debt $ 447.30
Receivable Turnover (TTM) 220.4 Total Debt to Equity 16.7 Total Liabilities $ 1,855.03
Inventory Turnover (TTM) 5.8
Asset Turnover (TTM) 2.1