2024 could be the biggest year in history for the Games Workshop share price. Here’s why!

News of a winning media deal with Amazon could see Games Workshop’s share price surge. But it’s not the only reason I’m hopeful for the new year.

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Tabletop games giant Games Workshop (LSE:GAW) has seen its share price rise an incredible 1,330% during the past 10 years. It’s helped pioneer the growth of the fantasy genre since it opened its first store in the late 1970s. It is now an industry leader with a market-cap of £3.2bn.

The FTSE 250 company traded at £31 per share just five years ago. Now its shares change hands for more than three times that value, at just shy of £99.

Games Workshop shares hit a record high of around £120 back in September 2021. And I think the business is in great shape to top that in 2024. Here’s why.

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Mega media deal

Artwork showing the Warhammer 40,000 world.
Image source: Games Workshop Limited

The buzz around the business currently centres on its plans to develop film and television content with Amazon.

In late 2022 it first announced discussions to bring its sprawling Warhammer universes to life with the US retail and streaming giant. And last month it said it had granted exclusive rights “for the prospective development by Amazon of Games Workshop’s Warhammer 40,000 universe into films and television series, together with associated merchandising rights“.

The firm has also given the option “to license equivalent rights in the Warhammer Fantasy universe” following the release of any Warhammer 40k production.

Up to now Games Workshop has predominantly licenced its IP for a string of highly-successful video games. The deal with Amazon could therefore take royalty revenues to the next level. Its world of Space Marines and Stormcast Eternals have huge cinematic potential and is ripe for showcasing on the big (and small) screen.

What’s more, the company would also likely enjoy significant opportunities to cross-sell its games, models, books and other fantasy paraphernalia through its stores and local websites.

Sales strength

Created with Highcharts 11.4.3Games Workshop Group Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

Fresh news on a blockbuster media deal could drive Games Workshop’s share price higher again. But this isn’t the only reason to be optimistic for the company in the new year.

Retailers like this aren’t immune to the broader pressure on consumer spending power. In fact the company’s last trading update in December signalled a slight slowdown in core revenues more recently.

But for the large part trading at the company remains pretty strong, which is testament to the quality of its products and the strength of fan demand. Sales growth of at least 11% was tipped for its first fiscal half (to 26 November), while pre-tax profits were expected to rise around 12%.

Its Warhammer products continue to sell like hotcakes, with its Leviathan box set — the 10th version of its Warhammer 40,000 system — selling out immediately on its June release. Signs of continued strong demand in 2024 could see interest in its shares light up again.

A top stock to buy

Today, Games Workshop shares trade on a forward price-to-earnings (P/E) ratio of around 22 times. I consider this fair value given its terrific growth potential around the globe.

I already own the company in my portfolio. And I plan to buy more of its shares in the new year.

Our analysis has uncovered an incredible value play!

This seems ridiculous, but we almost never see shares looking this cheap. Yet this Share Advisor pick has a price/book ratio of 0.31. In plain English, this means that investors effectively get in on a business that holds £1 of assets for every 31p they invest!

Of course, this is the stock market where money is always at risk — these valuations can change and there are no guarantees. But some risks are a LOT more interesting than others, and at The Motley Fool we believe this company is amongst them.

What’s more, it currently boasts a stellar dividend yield of around 10%, and right now it’s possible for investors to jump aboard at near-historic lows. Want to get the name for yourself?

See the full investment case

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Royston Wild has positions in Games Workshop Group Plc. The Motley Fool UK has recommended Amazon and Games Workshop Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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