TTWO PE Ratio & Valuation,Is TTWO Overvalued

TTWO Relative Valuation

TTWO's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, TTWO is overvalued; if below, it's undervalued.

Historical Valuation

Take-Two Interactive Software Inc (TTWO) is now in the Overvalued zone, suggesting that its current forward PE ratio of 72.31 is considered Overvalued compared with the five-year average of 42.75. The fair price of Take-Two Interactive Software Inc (TTWO) is between 100.05 to 184.57 according to relative valuation methord. Compared to the current price of 241.47 USD , Take-Two Interactive Software Inc is Overvalued By 30.83%.

Relative Value

Fair Zone

100.05-184.57

Current Price：241.47

30.83%

Overvalued

72.31

47.55

EV/EBITDA

Take-Two Interactive Software Inc. (TTWO) has a current EV/EBITDA of 47.55. The 5-year average EV/EBITDA is 28.04. The thresholds are as follows: Strongly Undervalued below 8.68, Undervalued between 8.68 and 18.36, Fairly Valued between 37.71 and 18.36, Overvalued between 37.71 and 47.39, and Strongly Overvalued above 47.39. The current Forward EV/EBITDA of 47.55 falls within the Strongly Overvalued range.

49.62

EV/EBIT

Take-Two Interactive Software Inc. (TTWO) has a current EV/EBIT of 49.62. The 5-year average EV/EBIT is 32.30. The thresholds are as follows: Strongly Undervalued below 8.24, Undervalued between 8.24 and 20.27, Fairly Valued between 44.33 and 20.27, Overvalued between 44.33 and 56.36, and Strongly Overvalued above 56.36. The current Forward EV/EBIT of 49.62 falls within the Overvalued range.

6.70

Take-Two Interactive Software Inc. (TTWO) has a current PS of 6.70. The 5-year average PS is 4.82. The thresholds are as follows: Strongly Undervalued below 2.48, Undervalued between 2.48 and 3.65, Fairly Valued between 5.99 and 3.65, Overvalued between 5.99 and 7.16, and Strongly Overvalued above 7.16. The current Forward PS of 6.70 falls within the Overvalued range.

52.71

P/OCF

Take-Two Interactive Software Inc. (TTWO) has a current P/OCF of 52.71. The 5-year average P/OCF is 64.61. The thresholds are as follows: Strongly Undervalued below -70.48, Undervalued between -70.48 and -2.93, Fairly Valued between 132.16 and -2.93, Overvalued between 132.16 and 199.71, and Strongly Overvalued above 199.71. The current Forward P/OCF of 52.71 falls within the Historic Trend Line -Fairly Valued range.

60.89

P/FCF

Take-Two Interactive Software Inc. (TTWO) has a current P/FCF of 60.89. The 5-year average P/FCF is 38.78. The thresholds are as follows: Strongly Undervalued below -269.65, Undervalued between -269.65 and -115.44, Fairly Valued between 192.99 and -115.44, Overvalued between 192.99 and 347.20, and Strongly Overvalued above 347.20. The current Forward P/FCF of 60.89 falls within the Historic Trend Line -Fairly Valued range.

Take-Two Interactive Software Inc (TTWO) has a current Price-to-Book (P/B) ratio of 12.99. Compared to its 3-year average P/B ratio of 6.07 , the current P/B ratio is approximately 114.10% higher. Relative to its 5-year average P/B ratio of 5.53, the current P/B ratio is about 134.84% higher. Take-Two Interactive Software Inc (TTWO) has a Forward Free Cash Flow (FCF) yield of approximately 0.45%. Compared to its 3-year average FCF yield of -0.74%, the current FCF yield is approximately -160.61% lower. Relative to its 5-year average FCF yield of 0.31% , the current FCF yield is about 47.81% lower.

12.99

P/B

Median3y

6.07

Median5y

5.53

0.45

FCF Yield

Median3y

-0.74

Median5y

0.31

Competitors Valuation Multiple

The average P/S ratio for TTWO's competitors is 6.99, providing a benchmark for relative valuation. Take-Two Interactive Software Inc Corp (TTWO) exhibits a P/S ratio of 6.70, which is -4.22% above the industry average. Given its robust revenue growth of 31.09%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of TTWO increased by 31.18% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -6.30 to -10.85.

The secondary factor is the Revenue Growth, contributed 31.09%to the performance.

Overall, the performance of TTWO in the past 1 year is driven by P/E Change. Which is more unsustainable.

31.09%

1.35B → 1.77B

Revenue Growth

-72.05%

-27.01 → -7.55

Margin Expansion

72.14%

-6.30 → -10.85

P/E Change

31.18%

184.08 → 241.47

Mkt Cap Growth

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Frequently Asked Questions

Is Take-Two Interactive Software Inc (TTWO) currently overvalued or undervalued?

What is Take-Two Interactive Software Inc (TTWO) fair value?

TTWO's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Take-Two Interactive Software Inc (TTWO) is between 100.05 to 184.57 according to relative valuation methord.

How does TTWO's valuation metrics compare to the industry average?

What is the current P/B ratio for Take-Two Interactive Software Inc (TTWO) as of Dec 15 2025?

As of Dec 15 2025, Take-Two Interactive Software Inc (TTWO) has a P/B ratio of 12.99. This indicates that the market values TTWO at 12.99 times its book value.

What is the current FCF Yield for Take-Two Interactive Software Inc (TTWO) as of Dec 15 2025?

As of Dec 15 2025, Take-Two Interactive Software Inc (TTWO) has a FCF Yield of 0.45%. This means that for every dollar of Take-Two Interactive Software Inc’s market capitalization, the company generates 0.45 cents in free cash flow.

What is the current Forward P/E ratio for Take-Two Interactive Software Inc (TTWO) as of Dec 15 2025?

As of Dec 15 2025, Take-Two Interactive Software Inc (TTWO) has a Forward P/E ratio of 72.31. This means the market is willing to pay $72.31 for every dollar of Take-Two Interactive Software Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Take-Two Interactive Software Inc (TTWO) as of Dec 15 2025?

As of Dec 15 2025, Take-Two Interactive Software Inc (TTWO) has a Forward P/S ratio of 6.70. This means the market is valuing TTWO at $6.70 for every dollar of expected revenue over the next 12 months.

TTWO Valuation