For fun, I decided to run my DCF indifference curve on GameStop this morning.

Background on this chart: In theory, the value of a company is the sum of it's discounted future cash flows. The future cash flows are largely a combination of two main factors: revenue growth rates, and profitability. Using current analyst estimates for the next three years for each company, I built a tool that would run discounted future cash flow analyses (DCF's) at varying combinations of revenue growth and profit levels. Each data point on the curve is a trade-off between growth and profit. At each point, the combination of growth and profit in the future approximates the enterprise value (not equity value) for the company.