NYU's 'Dean of Valuation’: GameStop would have to fall to $30 to be fairly priced

People walk by a GameStop store in Brooklyn on January 28, 2021 in New York City.
Spencer Platt | Getty Images News | Getty Images

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New York University finance professor Aswath Damodaran told CNBC on Wednesday he believes GameStop has more room to fall before it reaches what he considers a fair valuation.

The video-game retailer's stock was trading at nearly $108 Wednesday, up close to 20%. That follows two sessions of steep declines earlier this week as the retail-trading frenzy in the stock unwinds.

GameStop shares — which rallied 400% last week, at one point reaching an all-time high of $483 apiece — had surged in response to a short squeeze sparked by online traders rushing into the heavily bet-against name.