Games Workshop Shares Trade Above Recent Multiples as Growth Expectations Rise

Games Workshop (LON: GAW) shares are trading at elevated valuation multiples compared with their historical averages, reflecting strong growth expectations and investor optimism around the company’s long-term intellectual property strategy, according to a recent note from Edison Group.

Edison highlighted the company’s continued operational strength, noting that improved product innovation, deeper engagement with hobbyists and expanding global distribution have driven robust revenue growth.

At the same time, “a relentless focus on costs has delivered a step change in profitability and cash generation,” with returns on capital in the core non-licensing business consistently above 100%.

The analyst also pointed to structural growth in the business beyond major product launches.

Historically, Games Workshop’s largest franchises, Warhammer 40,000 and Warhammer Age of Sigmar, follow a three-year release cycle, but recent results suggest growth is becoming less dependent on those milestone releases.

Core revenue rose about 16% in FY25 and around 18% in the first half of FY26, even without a new Warhammer 40,000 edition launch during the period.

Edison recently lifted its FY26 profit forecast by 4%, reflecting strong first-half performance. However, the research house said current trading multiples already reflect significant optimism.

The stock is valued at roughly 31.5 times forecast FY26 earnings and about 8.9 times EV/sales, “both ahead of the average multiples of recent years.”

According to Edison, this premium valuation reflects expectations of further earnings upgrades as well as investor excitement over potential future revenue from licensing agreements, including a deal with Amazon.com, although material contributions from that partnership are unlikely for several years.