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GME Sum of The Parts - Another Fair Value Analysis Model for Gamestop
GME Sum of The Parts - Another Fair Value Analysis Model for Gamestop. Sum of the Parts analysis values a company by separately assessing the worth of its individual business segments or assets (cash, Bitcoin, operations, etc) and summing them to determine the total company value. This is in contrast to yesterdays DCF analysis which estimates a company's value based on the present value of its projected future cash flows, discounted to account for time and risk.
My interest in attempting my own Sum of the Parts analysis for Gamestop was driven by the company's recent purchase of Bitcoin and a strategy to potentially add more Bitcoin, as DCF models do not count Bitcoin since it is not a free cash flow generating asset.
In addition there was a write up on Barchart subsequently posted to Siperstonk which did a first pass at SOTP Analysis on GME but I found some of the assumptions made in that article wildly too optimistic and wanted to make my own version with more realistic assumptions. At any rate this one is a work in progress so if you have any suggestions, feedback or questions feel free to leave me a comment! #TonyDenaro #GME #SumofTheParts
Due Diligence Links:
Barchart SOTP Analayis article: http://bit.ly/4nNp5NP
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DISCLAIMER: Content, strategies and opinions on this channel are for entertainment purposes only. These are Tony's opinions, not specific investment or legal advice for you. Always do your own due diligence, read company filings and financial statements and seek a duly licensed professional for investment, tax or legal advice. Past performance is not a predictor of future results. This is not personalized but rather general educational and informational material.
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