TTWO Valuation

Take-Two Interactive Software Inc

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255.650

-0.72(-0.281%)1D

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 Fair zone, suggesting that its current forward PE ratio of 45.04 is considered Fairly compared with the five-year average of 41.47. The fair price of Take-Two Interactive Software Inc (TTWO) is between 176.63 to 307.57 according to relative valuation methord.

Relative Value

Fair Zone

176.63-307.57

Current Price：255.65

Fair

45.04

Trailing

Forward

30.55

EV/EBITDA

Take-Two Interactive Software Inc. (TTWO) has a current EV/EBITDA of 30.55. The 5-year average EV/EBITDA is 27.25. The thresholds are as follows: Strongly Undervalued below 9.83, Undervalued between 9.83 and 18.54, Fairly Valued between 35.97 and 18.54, Overvalued between 35.97 and 44.68, and Strongly Overvalued above 44.68. The current Forward EV/EBITDA of 30.55 falls within the Historic Trend Line -Fairly Valued range.

37.63

EV/EBIT

Take-Two Interactive Software Inc. (TTWO) has a current EV/EBIT of 37.63. The 5-year average EV/EBIT is 31.51. The thresholds are as follows: Strongly Undervalued below 8.62, Undervalued between 8.62 and 20.06, Fairly Valued between 42.96 and 20.06, Overvalued between 42.96 and 54.40, and Strongly Overvalued above 54.40. The current Forward EV/EBIT of 37.63 falls within the Historic Trend Line -Fairly Valued range.

256.37

Take-Two Interactive Software Inc. (TTWO) has a current PS of 256.37. The 5-year average PS is 5.19. The thresholds are as follows: Strongly Undervalued below -15.12, Undervalued between -15.12 and -4.97, Fairly Valued between 15.34 and -4.97, Overvalued between 15.34 and 25.49, and Strongly Overvalued above 25.49. The current Forward PS of 256.37 falls within the Strongly Overvalued range.

44.61

P/OCF

Take-Two Interactive Software Inc. (TTWO) has a current P/OCF of 44.61. The 5-year average P/OCF is 64.63. The thresholds are as follows: Strongly Undervalued below -71.47, Undervalued between -71.47 and -3.42, Fairly Valued between 132.69 and -3.42, Overvalued between 132.69 and 200.74, and Strongly Overvalued above 200.74. The current Forward P/OCF of 44.61 falls within the Historic Trend Line -Fairly Valued range.

44.19

P/FCF

Take-Two Interactive Software Inc. (TTWO) has a current P/FCF of 44.19. The 5-year average P/FCF is 38.28. The thresholds are as follows: Strongly Undervalued below -272.30, Undervalued between -272.30 and -117.01, Fairly Valued between 193.57 and -117.01, Overvalued between 193.57 and 348.86, and Strongly Overvalued above 348.86. The current Forward P/FCF of 44.19 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 13.58. Compared to its 3-year average P/B ratio of 5.60 , the current P/B ratio is approximately 142.45% higher. Relative to its 5-year average P/B ratio of 5.37, the current P/B ratio is about 152.85% higher. Take-Two Interactive Software Inc (TTWO) has a Forward Free Cash Flow (FCF) yield of approximately -0.12%. Compared to its 3-year average FCF yield of -0.79%, the current FCF yield is approximately -84.30% lower. Relative to its 5-year average FCF yield of 0.42% , the current FCF yield is about -129.61% lower.

13.58

P/B

Median3y

5.60

Median5y

5.37

-0.12

FCF Yield

Median3y

-0.79

Median5y

0.42

Competitors Valuation Multiple

The average P/S ratio for TTWO's competitors is 282.39, providing a benchmark for relative valuation. Take-Two Interactive Software Inc Corp (TTWO) exhibits a P/S ratio of 256.37, which is -9.21% above the industry average. Given its robust revenue growth of 12.37%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

TTWO.O

Take-Two Interactive Software Inc

Roper Technologies Inc

Performance Decomposition

Market capitalization of TTWO increased by 35.71% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -4.90 to -10.74.

The secondary factor is the Revenue Growth, contributed 12.37%to the performance.

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

12.37%

1.34B → 1.50B

Revenue Growth

-95.97%

-19.58 → -0.79

Margin Expansion

119.31%

-4.90 → -10.74

P/E Change

35.71%