The Cheapest Gun Stock in America
Locked, Loaded, and Listed: The SPAC That Went Bang
Gun stocks are finally waking up. After years of being ignored, the sector is rebounding — most major players are rallying. But one newly public company has slipped through the cracks. Since its July debut, the stock has been cut in half, even as peers move higher.
That disconnect is glaring because this company isn’t struggling. Revenues are growing year-over-year, firearm sales are up double digits, and it continues to take market share. Meanwhile, its closest publicly traded competitor trades at a much higher valuation multiple, while this business trades at a fraction of revenue. Strip out its $120M+ cash pile and the market is valuing the core operation at just $23M of enterprise value.
To put that in perspective, investors are effectively paying $23M for a profitable business generating ~$90M in annual revenue and ~$2.5–3M in EBITDA. That’s an EV/Revenue multiple of only ~0.25x — the kind of valuation normally reserved for distressed companies, not growing ones. By any reasonable standard, this is dirt cheap.
Management knows how mispriced this is. They’ve already launched a $20M buyback program to close the gap. And the board includes one of the most recognizable political figures in America — someone with unmatched reach into the very audience this business serves. With that kind of brand firepower, plus a tech-savvy management team executing in a fragmented $25B industry, the setup is unique.
The market hasn’t figured it out yet. But when it does, this stock won’t stay this cheap.
Headquartered in Coppell, Texas, GrabAGun Digital Holdings Inc. PEW 0.00%↑ operates as an eCommerce retailer of firearms, ammunition, and related accessories. The company was taken public in July 2025 through a SPAC merger with Colombier Acquisition Corp. II, debuting at just over $10 per share. After the initial meme-driven hype faded, the stock has slid to around $5 — cutting its valuation in half. Now trading at a much more modest price, and with several tragic but undeniable catalysts reigniting interest in gun stocks, GrabAGun might be entering a sweet spot for long-term investors.
Branding and Market Position
GrabAGun’s public listing was wrapped in hype, controversy, and meme-style marketing. With Donald Trump Jr. sitting on the Board of Directors, the company has leaned into right-leaning media and podcasts to build brand awareness. Behind the optics, however, lies a real and growing business. GrabAGun runs one of the largest online firearms platforms in the U.S., boasting:
42,000+ active SKUs
78,000+ registered users
A nationwide network of FFL pickup points for compliant transfers
A mobile-first platform powered by AI for inventory forecasting and personalization
GrabAGun’s strategy is simple: consolidate a fragmented $25 billion firearms and accessories market through acquisitions, technology development, and aggressive customer growth. Unlike many SPAC listings, GrabAGun is already profitable — albeit modestly so.
Recent Financial Results
For FY2024, GrabAGun reported:
Revenues: $93.1M
Gross profit: $9.5M (~10.2% margin)
Net income: $4.3M
In Q2 2025, results continued to trend positively:
Revenues: $21.2M (+4% YoY)
Firearm sales: $17.8M (+11% YoY, driven by 16% volume growth)
Gross profit margin: 10%
Net income: $0.6M
Adjusted EBITDA: $0.8M
Importantly, the business is scaling responsibly, showing profitability while most SPAC-backed e-commerce peers are still burning cash.
Capital Structure
GrabAGun’s balance sheet is strikingly clean. Upon closing the SPAC merger in July 2025, the company received gross proceeds of $179M, which after redemptions and transaction costs translated into over $120M of net cash as of Q2 2025. Meanwhile, the operating subsidiary’s June 30 balance sheet showed just $4.6M in cash, highlighting how the bulk of the funds only appeared post-merger.
Critically, the company carries no funded debt — its liabilities are mostly trade payables and operating leases. At ~$4.48/share, GrabAGun’s market capitalization sits near $143M, while its enterprise value (EV), after subtracting the $120M+ cash, is now only about $23M.
This means investors are paying just $23M for a business generating ~$90M in trailing twelve-month revenue and ~$2.5–3M in adjusted EBITDA. The result:
EV/Revenue: ~0.25x
EV/EBITDA: ~8–9x
Why the Website Matters
One of GrabAGun’s most overlooked advantages is its website quality. Compared to clunky platforms like Gunbroker.com (owned by Outdoor Holding Co. / POWW), GrabAGun’s site is sleek, intuitive, and designed exclusively for firearms buyers. Search functionality, product categorization, and mobile usability all mirror modern e-commerce leaders rather than legacy sporting goods stores.
For younger buyers who expect a clean, Amazon-like interface, this positioning could be pivotal. It lowers friction, makes gun purchases feel more informed, and builds brand stickiness at a time when Millennials and Gen Z are entering the gun ownership market.
The M&A Opportunity
GrabAGun’s cash pile gives it optionality. With rivals like Outdoor Holding Co. (Gunbroker.com) POWW 0.00%↑ trading at a market cap of just ~$170M, PEW has the financial firepower to make transformative acquisitions. Even smaller tuck-in deals could quickly build scale and improve margins through operating leverage.
If PEW successfully executes on M&A during a downturn — scooping up competitors at discounts — it could emerge from the next upcycle with a defensible moat in online firearms retail.
Risks
The biggest risks to GrabAGun’s story are inventory management and margin pressure. With gross margins around 10%, the business depends on tight control of working capital and efficiency rather than pricing power. Any slip-up in inventory forecasting could quickly erode profitability.
There’s also reputational and political risk: firearms remain a polarizing sector, and relying on Donald Trump Jr. as a brand ambassador could both attract and repel different customer groups.
Conclusion
GrabAGun Digital Holdings $PEW is no longer just a meme stock. Stripped of its $120M cash hoard, the operating business trades at an enterprise value of just $23M — a fraction of revenues and well below what comparable e-commerce platforms fetch. With profitability already in place, a strong cash cushion, and a differentiated website experience, PEW looks positioned to consolidate the online firearms market at a discount.
For investors willing to stomach the risks of a controversial sector, this might be a classic deep value + growth optionality play hiding in plain sight.
Disclosure: I do not own GrabAGun Digital Holdings Inc. ($PEW) but I may consider taking a position anytime following this article. This is not investment advice. I am not an investment advisor. Do your own research.
They have to deSPAC.