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Motorsport GamesMSGM +2.84%53 Gross Margin % is 87.17% as of Mar. 2026, which is 48% above its 10-year median of 58.75. GuruFocus rates MSGM with a GF Score™ of 53/100 and a GF Value™ of $2.00 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 493 Interactive Media companies, Motorsport Games ranks better than 73.63% on this metric.
Motorsport Games (NAS:MSGM) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Motorsport Games had a gross margin of 87.17% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Motorsport Games Gross Margin % Related Terms
Motorsport Games Gross Margin % Historical Data
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The historical data trend for Motorsport Games's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MSGM vs GIGM, GXAI, DKI: Gross Margin % Comparison
For the Electronic Gaming & Multimedia subindustry, Motorsport Games's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Motorsport Games Gross Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Motorsport Games's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Motorsport Games's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Motorsport Games (MSGM) has a Gross Margin % of 87.17% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Motorsport Games and its competitors. This is 48% above median its historical median of 58.75. Over the past decade, Motorsport Games' Gross Margin % has ranged from 47.60 to 84.19. According to the industry distribution chart, Motorsport Games ranks #130 out of 493 companies in the Interactive Media industry, placing it in the top 26.4%.
Is Motorsport Games' Gross Margin % too high?
Motorsport Games' current Gross Margin % of 87.17% is 48% above median its 10-year median of 58.75. Over the past 10 years, this metric has ranged from a low of 47.60 to a high of 84.19. The Interactive Media industry median Gross Margin % is 61.61. Motorsport Games' value of 87.17% is 41.5% above this industry median. Based on the distribution chart, Motorsport Games ranks #130 out of 493 companies in the Interactive Media industry, which is above the industry midpoint. Overall, Motorsport Games has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Motorsport Games' Gross Margin % compare to GIGM and GXAI?
According to the Interactive Media industry distribution chart, Motorsport Games ranks #130 out of 493 companies for Gross Margin %. This puts Motorsport Games in the upper half of its industry. The industry median Gross Margin % is 61.61. Motorsport Games' value of 87.17% is 41.5% above this benchmark. Historically, Motorsport Games' own Gross Margin % has ranged from 47.60 to 84.19 over the past decade. While the company's 10-year median is 58.75 vs. the industry median of 61.61, Motorsport Games has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Interactive Media company?
The median Gross Margin % among Interactive Media companies is 61.61, based on 493 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Motorsport Games's current Gross Margin % of 87.17% is 41.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Motorsport Games and its competitors. For the Interactive Media industry, the median Gross Margin % is 61.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Motorsport Games's current Gross Margin % is 87.17%, which is 48% above median its own 10-year median of 58.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Motorsport Games stock overvalued right now?
Based on GuruFocus' analysis, Motorsport Games (MSGM) is currently considered Significantly Overvalued. The stock's GF Value™ is $2.00, compared to a current price of $3.99 — trading 99.5% above its estimated fair value. The current Gross Margin % is 87.17%, which is 48% above median its 10-year median of 58.75 and 41.5% above the Interactive Media industry median of 61.61. Motorsport Games' overall GF Score™ is 53/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Motorsport Games (MSGM), the current Gross Margin % is 87.17% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Motorsport Games (MSGM) Overvalued in 2026?
Based on GuruFocus' analysis, Motorsport Games stock appears to be overvalued.
The current stock price of $3.99 is trading 99.5% above its estimated GF Value™ of $2.00.
GuruFocus considers Motorsport Games to be Significantly Overvalued.
Key valuation signals for MSGM:
Gross Margin %: 87.17% (48% above median its 10-year median of 58.75)
GF Value™: $2.00 vs. price of $3.99 (99.5% above fair value)
Industry Position: 41.5% above the Interactive Media median (#130 of 493)
No single metric tells the full story. See the MSGM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Motorsport Games Inc is a racing game developer, publisher, and esports ecosystem provider of official motorsport racing series, including games based on the 24 Hours of Le Mans endurance race (Le Mans) and the associated FIA World Endurance Championship (the WEC). Its portfolio also includes the KartKraft karting simulation game, as well as Studio 397 B.V. (Studio397) and their rFactor 2 realistic racing simulator technology and platform. The games are developed and published for personal computers (PCs) through various digital channels, including full-game and downloadable content (DLC). Additionally, Motorsport Games organizes esports tournaments, competitions, and events. Its reportable segments are: Gaming, which generates the maximum revenue, and Esports.
53GF Score
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