Video games Workshop (GAW) shares are on a meteoric rise that exhibits no indicators of easing.

Up 140% within the final 5 years, the tabletop gaming big breached the gates of the FTSE 100 final December. And it’s acquired 2025 off to a bang, up nearly 9% within the yr thus far.

Video games Workshop’s share price obtained a further increase on Wednesday (5 March) after yet one more sturdy buying and selling replace. It mentioned that “buying and selling in January and February has been forward of expectations, with sturdy buying and selling throughout each the core enterprise and licensing“.

Consequently, it mentioned pre-tax revenue for the monetary yr to June 2025 “is estimated to be forward of expectations“. This pushed its share price round 6% larger in mid-week enterprise.

Overvalued?

Finest identified for its Warhammer gaming system, Video games Workshop units the usual within the quickly rising world of fantasy conflict gaming. Its share price has rocketed, as gross sales of its miniatures have soared together with royalty revenues.

Core gaming gross sales rose 14.3% within the first half of the yr. Licencing revenues from video video games and different media, in the meantime, leapt 149%.

I’m assured of additional stratospheric royalties progress, too, beneath Video games Workshop’s lately signed movie and TV cope with Amazon.

Can the Video games Workshop price hold flying, although? In different phrases, is its big progress potential now baked into its excessive valuation?

The corporate’s price growth means it now trades on a ahead price-to-earnings (P/E) ratio of 29.2 instances. That is greater than double the FTSE 100’s ahead common, and properly above a a number of of round 22 a yr in the past.

And whereas the corporate’s flying, it nonetheless faces important hazards that may dent its momentum. Gross sales are hovering, however new US commerce tariffs might considerably compromise future progress (the enterprise manufactures 100% of its product in Nottingham, England).

The enterprise has additionally, in current instances, struggled to fulfill the tempo of demand for its merchandise. It warned in January that “we’re nonetheless not assembly our inventory availability KPIs and never all of our new product releases offered to our deliberate ranges“.

A monster share to think about

No share is with out threat, nevertheless. And on stability, I believe Video games Workshop’s share price ought to carry on surging.

In addition to being a shareholder myself, I’m an enormous fan of the corporate’s merchandise (I’m at present constructing a mighty Soulblight Gravelords military, in case you’re questioning). So I prefer to assume I do know what I’m speaking about!

Video games Workshop has made topping forecasts a welcome behavior. Contemporary from beating brokers’ revenue estimates for the final monetary yr, the corporate mentioned in October it was on the right track to beat half-year forecasts for 2025, too, which it duly did.

Right this moment’s replace retains the run going. I don’t assume the story’s over, both, given the sturdy, broad-based momentum the enterprise is having fun with, and the possibly huge contribution of the Amazon deal.

Analysts at Peel Hunt have hiked their Video games Workshop price goal to £15 per share from £14.40 following at present’s market replace. And so they say that “the shares have carried out properly, however there continues to be clear momentum“. I count on additional important appreciation within the months and years forward. At present, I’m completely happy holding the shares I’ve as a part of a diversified portfolio.