Take Two Interactive Software Inc (TTWO)
Communication Services · Interactive Home Entertainment · US stock · S&P 500 component
$207.81
▲ +1.65 (0.80%)
Fair valueOvervalued
$158 −24.1% to fair value
$79fair band $134–$191$237
Day's range
$206.47 – $211.99
52-week range
$187.63 – $265.94
Red flags⚠ Heavy dilution⚠ Heavy dilution⚠ Heavy dilution⚠ Heavy dilution⚠ Heavy dilution
About Take Two Interactive Software Inc
Interactive entertainment for consoles, personal computers and mobile devices is developed, published and marketed by Take-Two Interactive. Its Rockstar Games label is behind Grand Theft Auto and Red Dead Redemption, and the company also publishes sports, strategy and mobile titles through its other labels. Players obtain games through digital stores and retailers, and many then spend on in-game content. The business runs a mix of new releases and long-lived franchise titles.
Revenue comes from full game releases and from recurring spending on in-game content and mobile games. Revenue was $6.7 billion over the last twelve months and has grown at 7.6% a year across the last three years. The operating margin is -2.4%, and the business earns -3% on the capital invested in it. Net debt is 19.8 times EBITDA. No dividend is paid. On the site's X-Ray Score it receives 32 out of 100.
Price chart
52-wk range $187.63 – $265.94Volume 2,356,806Daily, split-adjusted
Vitals
Market cap$38.7B
52-week range$187.63 – $265.94
Volume (last day)2,356,806
P/E (TTM)–
EBIT / EV yield-0.4%
Free-cash-flow yield0.9%
Dividend yieldNo dividend
Revenue (TTM)$6.7B
Net income (TTM)−$320M
Operating margin-2.4%
Return on capital-3.0%
Debt incl. leases$2.5B
Cash & securities$1.8B
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$158middle half of models $139 – $177
Overvalued
−24.1% to fair value
Average of the 6 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Low, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $208
Undervalued < $134Fair $134 – $191Overvalued > $191
P/B multiple
$136
P/S multiple
$168
EV/EBITDA multiple
$126
EV/revenue multiple
$180
10-year DCF, revenue exit
$148
5-year DCF, revenue exit
$188
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Weak business, priced high
Our models put fair value below today's price, so a lot of good news may already be in the price. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Communication Services peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Weak
11/100
Expensive against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield-0.4%
Free-cash-flow yield0.9%
Fair value vs price0.8×
Growth
Fair
61/100
Growing at a typical pace for its sector.
See the numbers →
Revenue growth (3y)7.6%
Growth consistency80%
Profitability
Weak
30/100
Earns lower returns on its capital than most peers.
See the numbers →
Return on invested capital-3.0%
Operating margin-2.4%
Gross profitability41.3%
Financial health
Weak
29/100
Balance sheet is more stretched than most peers.
See the numbers →
Piotroski F-Score7 / 9
Net debt / EBITDA19.8×
Interest cover-1.1×
Dividends
None
–/100
Pays no dividend.
See the numbers →
Quarterly results: last 6 quarters
+13.1%
Mar '25
+12.4%
Jun '25
+31.1%
Sep '25
+24.9%
Dec '25
+6.1%
Mar '26
+2.0%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $1.5B, diluted EPS $-0.18.
SWOT analysis: Take Two Interactive Software Inc
Strengthsinside the company
- Passes 7 of the 9 Piotroski tests, which points to improving profitability, funding and efficiency.
Weaknessesinside the company
- Return on invested capital is only -3.0% (median 11.8% for sector peers), so the business earns little above its cost of capital.
- Operating margin of -2.4% is thin against 19.8% for sector peers.
- Net debt is 19.8x EBITDA, above the 3x level that lenders usually watch.
Opportunitiesvaluation and setting
- Revenue growth picked up to 18.2% last year from 7.6% a year over three years.
- Our Market Compass rates the backdrop for Communication Services as favourable.
Threatsvaluation and setting
- Heavy debt makes profits sensitive to interest rates and refinancing conditions.
- The price is 24% above our fair value estimate, so there is little room for disappointment.
- Our checks raised: Heavy dilution; Heavy dilution.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare TTWO with peers and sector
Medians of 17 Communication Services peers and of 17 Communication Services stocks in our universe.
Largest peers (X-Ray Score): GOOG 50, META 58, NFLX 58, CCZ 48, DIS 56, VZ 49.
| Metric | TTWO | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 32 | 52 | 52 |
| Valuation | 11 | 54 | 54 |
| Growth | 61 | 48 | 48 |
| Profitability | 30 | 54 | 54 |
| Financial health | 29 | 52 | 52 |
| Dividends | – | 47 | 47 |
Sector leaders: highest X-Ray Score in Communication Services
TTWO ranks #17 of 18 in Communication Services by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for TTWO
Each factor is rated by where TTWO stands among the 18 Communication Services stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 4 Good · 3 Average · 11 Bad of 18
Growth: 1 · 1 · 0
Profitability: 0 · 1 · 4
Financial strength: 1 · 1 · 2
Valuation: 0 · 0 · 4
Cash flow: 1 · 0 · 1
Efficiency: 1 · 0 · 0
| Factor | TTWO | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +7.6% | Average beats 58% | +5.6% | – | – |
| Revenue growth, last year | +18.2% | Good beats 81% | +7.7% | +5.3% | ▲ Better |
| Profitability | |||||
| Gross margin | 56.0% | Average beats 62% | 47.1% | 54.4% | ≈ In line |
| Operating margin | -2.4% | Bad beats 8% | 19.3% | -21.8% | ▲ Better |
| Net margin | -4.8% | Bad beats 3% | 10.6% | -21.0% | ▲ Better |
| Return on invested capital | -3.0% | Bad beats 8% | 10.4% | – | – |
| Return on equity | -8.9% | Bad beats 3% | 17.9% | -12.4% | ▲ Better |
| Financial strength | |||||
| Net debt / EBITDA | 19.8x | Bad beats 3% | 1.4x | – | – |
| Interest cover | -1.1x | Bad beats 3% | 11.8x | -17.3x | ▲ Better |
| Current ratio | 1.06 | Average beats 47% | 1.10 | 0.94 | ▲ Better |
| Piotroski F-score | 7 / 9 | Good beats 75% | 6 / 9 | – | – |
| Valuation | |||||
| Price / book | 10.7x | Bad beats 14% | 2.8x | 4.7x | ▼ Worse |
| Price / sales | 5.8x | Bad beats 31% | 2.0x | 5.1x | ▼ Worse |
| EV / EBITDA | 1,125.4x | Bad beats 3% | 13.4x | – | – |
| Free cash flow yield | 0.9% | Bad beats 12% | 3.9% | -0.6% | ▲ Better |
| Cash flow | |||||
| Free cash flow margin | 5.0% | Bad beats 9% | 15.7% | -2.9% | ▲ Better |
| Accruals (lower is better) | −9.1% | Good beats 84% | −5.8% | – | – |
| Efficiency | |||||
| Days sales outstanding | 33 days | Good beats 72% | 47 days | 50 days | ▲ Better |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 2 Good · ● 4 Average · ● 8 BadCash quality
Earnings backed by cashGood
Free-cash-flow yieldBad
Risk models
Altman Z''Bad
Piotroski F-ScoreGood
Growth
Revenue growth (3y)Average
Growth consistencyAverage
Balance sheet
Current ratioAverage
Net debt / EBITDABad
Interest coverBad
Valuation
Fair value vs priceBad
EBIT / EV yieldBad
Profitability
Return on invested capitalBad
Operating marginBad
Gross profitabilityAverage
Each check is graded against the company's sector, not a fixed number. Checklist score 31/100.
Financials
| FY22 | FY23 | FY24 | FY25 | FY26 | |
|---|---|---|---|---|---|
| Revenue | $3.5B | $5.3B | $5.3B | $5.6B | $6.7B |
| Operating income | $474M | −$1.2B | −$3.6B | −$4.4B | −$104M |
| Net income | $418M | −$1.1B | −$3.7B | −$4.5B | −$298M |
| Operating cash flow | $258M | $1M | −$16M | −$45M | $624M |
| Operating margin | 13.5% | -21.8% | -67.1% | -77.9% | -1.6% |
| Free cash flow | $99M | −$203M | −$158M | −$215M | $462M |
| Diluted EPS | $3.58 | $-7.03 | $-22.01 | $-25.58 | $-1.62 |
Fiscal years, from SEC filings.
Technical summary
Daily
Neutral
5 bullish · 4 neutral · 7 bearish
Weekly
Strongly bearish
1 bullish · 1 neutral · 10 bearish
Monthly
Bearish
2 bullish · 1 neutral · 5 bearish
Moving averages (daily)
| SMA 10 | 206.4 | Bullish |
| EMA 10 | 206.2 | Bullish |
| SMA 20 | 205.2 | Bullish |
| EMA 20 | 207.0 | Bullish |
| SMA 50 | 215.7 | Bearish |
| EMA 50 | 214.0 | Bearish |
| SMA 100 | 226.3 | Bearish |
| EMA 100 | 219.9 | Bearish |
| SMA 200 | 221.4 | Bearish |
| EMA 200 | 223.0 | Bearish |
Oscillators (daily)
| RSI (14) | 49.06 | Neutral |
| MACD (12, 26) | -2.09 | Bearish |
| Momentum (12) | 2.61 | Bullish |
| Stochastic %K (14) | 59.45 | Neutral |
| Williams %R (14) | -40.55 | Neutral |
| CCI (20) | 86.57 | Neutral |
Pivot points (classic, last session)
S3 200.0 | S2 203.2 | S1 205.5 | Pivot 208.8 | R1 211.0 | R2 214.3 | R3 216.6 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
ETFs that hold TTWO
| ETF | Share of the fund |
|---|---|
| XLC Communication Services Select Sector S... | 5.25% |
| JTEK JPMorgan U.S. Tech Leaders | 3.48% |
| FCOM Fidelity MSCI Communication Services I... | 2.62% |
| VOX Vanguard Communication Services | 2.08% |
| IGV iShares Expanded Tech-Software Sector | 1.65% |
| IWP iShares Russell Mid-Cap Growth | 1.25% |
| QQQE Direxion NASDAQ-100 Equal Weighted Ind... | 1.10% |
| VOT Vanguard Mid-Cap Growth | 0.97% |
The eight funds with the largest weight in TTWO among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
TTWO stock splits
TTWO has split its stock once since 2005. The latest was a 3-for-2 split on 12 Apr 2005.
Full TTWO stock split history →TTWO SEC filings
8-KSEC EDGAR
Entered a material agreement
8-KSEC EDGAR
Shareholder vote results
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
DEF 14ASEC EDGAR
Proxy statement
10-KSEC EDGAR
Annual report
8-KSEC EDGAR
Results of operations
10-QSEC EDGAR
Quarterly report
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.