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Take-Two Interactive Software Inc

Exchange: NASDAQSector: Communication ServicesIndustry: Electronic Gaming & Multimedia

NBA Take-Two Media (NBAT2) is the next chapter in the long-standing partnership between the NBA and Take-Two Interactive Software. The place where basketball and culture collide, NBAT2 is a modern entertainment company that will bring fans and players together through competitive gaming, social-first content, original programming and live events. Created to celebrate basketball's unique role in culture, NBAT2 will produce stories and experiences across gaming, travel, music, fashion, food and more in partnership with tastemakers, athletes, creators and fans. The company is headquartered in Brooklyn, New York. About the NBA The National Basketball Association (NBA) is a global sports and media organization with the mission to inspire and connect people everywhere through the power of basketball. Built around five professional sports leagues: the NBA, WNBA, NBA G League, NBA 2K League and Basketball Africa League, the NBA has established a major international presence with games and programming available in 214 countries and territories in more than 50 languages, and merchandise for sale in more than 200 countries and territories on all seven continents. NBA rosters at the start of the 2025-26 season featured a record 135 international players from a record-tying 43 countries. The NBA's digital assets include NBA TV, NBA.com, the NBA App and NBA League Pass. The NBA has created one of the largest social media communities in the world, with more than 2.5 billion likes and followers globally across all leagues, team and player platforms. NBA Cares, the NBA's global social impact platform celebrating its 20 th year, drives change on issues facing fans and communities in the areas of health and wellness, civic engagement, social justice and inclusion, and sustainability. About the NBPA The National Basketball Players Association (NBPA) is the union for current professional basketball players in the National Basketball Association (NBA). Established in 1954, the NBPA's mission is to protect and advance the rights of our players. They are the game. The NBPA advocates on behalf of the best interests of all NBA players, including negotiating collective bargaining agreements, filing grievances on behalf of the players, counseling players on benefits, and educating on post-NBA career opportunities. Business opportunities are generated by THINK450, the group licensing and partnership engine of the NBPA. With more than 80 active partnerships, THINK450 is dedicated to uncovering shared interests between players and leading brands to build more engaging collaborations. The NBPA Foundation is dedicated to preserving the legacy of its members by supporting and assisting people, communities, and organizations worldwide. It spotlights and amplifies the global initiatives of professional basketball players, driving positive change through community building, charitable endeavors, and social entrepreneurship.

Did you know?

Price sits at 49% of its 52-week range.

Current Price

$225.18

+4.24%

GoodMoat Value

$102.51

54.5% overvalued
Profile
Valuation (TTM)
Market Cap$41.61B
P/E-10.49
EV$38.17B
P/B19.46
Shares Out184.78M
P/Sales6.34
Revenue$6.56B
EV/EBITDA

Take-Two Interactive Software Inc (TTWO) Valuation

GoodMoat Analysis

Based on data as of March 26, 2026

The current price of $193.05 is 88% above the GoodMoat Target of $102.51, indicating a significant premium and a negative margin of safety. Key valuation metrics like the negative P/E and negative free cash flow yield are unfavourable, especially when compared to the sector's positive average. The stock appears expensive relative to its current financial quality.

Read full analysis
From a value investing perspective, Take-Two Interactive's valuation is deeply unfavourable. The primary tool in the GoodMoat framework is the DCF-derived margin of safety. The current price of $193.05 is 88% above the GoodMoat Target fair value estimate of $102.51. This represents a negative margin of safety, placing it firmly in the 'Unfavourable' band per Section 4 of the framework, which requires a margin of safety of at least 20% to be considered favourable. Supporting valuation metrics are equally concerning. The company's P/E ratio is negative at -9.0, reflecting a lack of GAAP profitability, which contrasts sharply with a sector where positive P/E ratios are the norm. The negative free cash flow yield of -0.6% further indicates the company is not generating cash for shareholders at present. While the 24.9% YoY revenue growth is strong, the valuation does not account for the significant near-term losses, as evidenced by the -60.4% profit margin. The stock is trading at a substantial premium to its estimated intrinsic value, with no margin of safety to protect an investor from downside risk based on current fundamentals. Analysis based on data as of 2024-05-15.

TTWO Fair Value Estimate

$102.5154.5% overvalued

Blended fair value estimate based on DCF, Graham Number, and earnings-based models.

TTWO Valuation Metrics

FCF$-214.60M
FCF Growth Rate
EPS Growth (CAGR)7.78%
WACC10.00%

TTWO Valuation & Fair Value Analysis

Take-Two Interactive Software Inc (TTWO) valuation analysis using multiple fair value methodologies. GoodMoat calculates a blended fair value target using discounted cash flow (DCF) analysis, the Graham Number, and earnings-based valuation models.

The GoodMoat Fair Value target for Take-Two Interactive Software Inc is $102.51. The current stock price is $225.18, suggesting the stock is 119.7% overvalued.

The price-to-earnings (P/E) ratio is -10.49. Price-to-book ratio is 19.46. Price-to-sales ratio is 6.34. PEG ratio is 0.35.

GoodMoat's valuation models include the Graham Number (based on EPS and book value), an earnings-based model (discounted future EPS), and a PEG-adjusted valuation. The three models are averaged to produce a blended fair value estimate. Use these tools alongside the DCF calculator and reverse DCF to form a comprehensive view of Take-Two Interactive Software Inc's intrinsic value.