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 75.35 is considered Overvalued compared with the five-year average of 43.06. The fair price of Take-Two Interactive Software Inc (TTWO) is between 105.78 to 193.87 according to relative valuation methord. Compared to the current price of 256.67 USD , Take-Two Interactive Software Inc is Overvalued By 32.4%.
Relative Value
Fair Zone
105.78-193.87
Current Price：256.67
32.4%
Overvalued
75.35
PE
1Y
3Y
5Y
49.48
EV/EBITDA
Take-Two Interactive Software Inc. (TTWO) has a current EV/EBITDA of 49.48. The 5-year average EV/EBITDA is 28.19. The thresholds are as follows: Strongly Undervalued below 8.41, Undervalued between 8.41 and 18.30, Fairly Valued between 38.08 and 18.30, Overvalued between 38.08 and 47.97, and Strongly Overvalued above 47.97. The current Forward EV/EBITDA of 49.48 falls within the Strongly Overvalued range.
51.64
EV/EBIT
Take-Two Interactive Software Inc. (TTWO) has a current EV/EBIT of 51.64. The 5-year average EV/EBIT is 32.47. The thresholds are as follows: Strongly Undervalued below 8.10, Undervalued between 8.10 and 20.28, Fairly Valued between 44.66 and 20.28, Overvalued between 44.66 and 56.85, and Strongly Overvalued above 56.85. The current Forward EV/EBIT of 51.64 falls within the Overvalued range.
6.98
PS
Take-Two Interactive Software Inc. (TTWO) has a current PS of 6.98. The 5-year average PS is 4.80. The thresholds are as follows: Strongly Undervalued below 2.51, Undervalued between 2.51 and 3.66, Fairly Valued between 5.95 and 3.66, Overvalued between 5.95 and 7.09, and Strongly Overvalued above 7.09. The current Forward PS of 6.98 falls within the Overvalued range.
54.92
P/OCF
Take-Two Interactive Software Inc. (TTWO) has a current P/OCF of 54.92. The 5-year average P/OCF is 64.73. The thresholds are as follows: Strongly Undervalued below -70.52, Undervalued between -70.52 and -2.90, Fairly Valued between 132.35 and -2.90, Overvalued between 132.35 and 199.98, and Strongly Overvalued above 199.98. The current Forward P/OCF of 54.92 falls within the Historic Trend Line -Fairly Valued range.
63.45
P/FCF
Take-Two Interactive Software Inc. (TTWO) has a current P/FCF of 63.45. The 5-year average P/FCF is 38.76. The thresholds are as follows: Strongly Undervalued below -270.14, Undervalued between -270.14 and -115.69, Fairly Valued between 193.22 and -115.69, Overvalued between 193.22 and 347.67, and Strongly Overvalued above 347.67. The current Forward P/FCF of 63.45 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 13.54. Compared to its 3-year average P/B ratio of 6.28 , the current P/B ratio is approximately 115.64% higher. Relative to its 5-year average P/B ratio of 5.59, the current P/B ratio is about 142.37% higher. Take-Two Interactive Software Inc (TTWO) has a Forward Free Cash Flow (FCF) yield of approximately 0.43%. Compared to its 3-year average FCF yield of -0.74%, the current FCF yield is approximately -158.53% lower. Relative to its 5-year average FCF yield of 0.25% , the current FCF yield is about 72.36% lower.
13.54
P/B
Median3y
6.28
Median5y
5.59
0.43
FCF Yield
Median3y
-0.74
Median5y
0.25
Competitors Valuation Multiple
The average P/S ratio for TTWO's competitors is 18.32, providing a benchmark for relative valuation. Take-Two Interactive Software Inc Corp (TTWO) exhibits a P/S ratio of 6.98, which is -61.92% above the industry average. Given its robust revenue growth of 31.09%, this premium appears sustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of TTWO increased by 38.36% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -6.30 to -11.30.
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.
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Frequently Asked Questions
Is Take-Two Interactive Software Inc (TTWO) currently overvalued or undervalued?
Take-Two Interactive Software Inc (TTWO) is now in the Overvalued zone, suggesting that its current forward PE ratio of 75.35 is considered Overvalued compared with the five-year average of 43.06. The fair price of Take-Two Interactive Software Inc (TTWO) is between 105.78 to 193.87 according to relative valuation methord. Compared to the current price of 256.67 USD , Take-Two Interactive Software Inc is Overvalued By 32.40% .
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 105.78 to 193.87 according to relative valuation methord.
How does TTWO's valuation metrics compare to the industry average?
The average P/S ratio for TTWO's competitors is 18.32, providing a benchmark for relative valuation. Take-Two Interactive Software Inc Corp (TTWO) exhibits a P/S ratio of 6.98, which is -61.92% above the industry average. Given its robust revenue growth of 31.09%, this premium appears sustainable.
What is the current P/B ratio for Take-Two Interactive Software Inc (TTWO) as of Jan 09 2026?
As of Jan 09 2026, Take-Two Interactive Software Inc (TTWO) has a P/B ratio of 13.54. This indicates that the market values TTWO at 13.54 times its book value.
What is the current FCF Yield for Take-Two Interactive Software Inc (TTWO) as of Jan 09 2026?
As of Jan 09 2026, Take-Two Interactive Software Inc (TTWO) has a FCF Yield of 0.43%. This means that for every dollar of Take-Two Interactive Software Inc’s market capitalization, the company generates 0.43 cents in free cash flow.
What is the current Forward P/E ratio for Take-Two Interactive Software Inc (TTWO) as of Jan 09 2026?
As of Jan 09 2026, Take-Two Interactive Software Inc (TTWO) has a Forward P/E ratio of 75.35. This means the market is willing to pay $75.35 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 Jan 09 2026?
As of Jan 09 2026, Take-Two Interactive Software Inc (TTWO) has a Forward P/S ratio of 6.98. This means the market is valuing TTWO at $6.98 for every dollar of expected revenue over the next 12 months.