Take-Two Interactive Software, Inc. (TTWO) Stock Valuation — PE Analysis
Electronic Gaming & Multimedia · NASDAQ
Current Price
$211.75
PE Ratio (TTM)
n/m
Intrinsic Value
Use the calculator below to estimate
COMPETITIVE MOAT
↑Grand Theft Auto Franchise Power
The immense popularity and cultural impact of the Grand Theft Auto series create a powerful brand moat. Its established player base and anticipation for GTA VI drive significant demand and pricing power.
↑Recurring Revenue Potential
GTA VI's launch is expected to unlock substantial recurring revenue streams through in-game purchases and ongoing content. This diversifies income beyond initial game sales, fostering customer loyalty.
↑IP Diversification Strategy
Take-Two's ownership of diverse intellectual properties like NBA 2K and Red Dead Redemption allows for cross-genre appeal and reduces reliance on a single franchise. This broad portfolio strengthens its market position.
INVESTMENT RISKS
↓Development Cost Escalation
The increasing complexity and cost of AAA game development, especially for titles like GTA VI, pose a significant financial risk. Delays or budget overruns can impact profitability.
↓Intense Industry Competition
The electronic gaming market is highly competitive with numerous established players and new entrants. Maintaining market share requires continuous innovation and substantial marketing investment.
↓Memory Supply Chain Constraints
Ongoing memory shortages can disrupt production and increase hardware costs for game development and distribution. This bottleneck could impact the timely release and profitability of new titles.
Customize the TTWO PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Take-Two Interactive Software, Inc. respond.
Open PE Calculator for TTWOCompany Overview
Established in 1993 and headquartered in New York, New York, Take-Two Interactive Software, Inc. is a global leader in the development, publishing, and marketing of interactive entertainment experiences for consumers worldwide. The company's extensive catalog is primarily distributed under its prominent labels: Rockstar Games, 2K, Private Division, and T2 Mobile Games. Rockstar Games is renowned for its action-adventure titles, including iconic franchises like Grand Theft Auto, Red Dead Redemption, Max Payne, and Midnight Club, alongside other fan favorites such as LA Noire, Bully, and Manhunt. The 2K label covers a broad spectrum of genres, offering popular series in shooter (Borderlands), action (BioShock, Mafia), role-playing, strategy (Sid Meier's Civilization, XCOM series), sports, and family/casual categories. This includes highly successful sports simulation games like the NBA 2K basketball series, WWE 2K professional wrestling, and PGA TOUR 2K. Private Division supports titles such as Kerbal Space Program, OlliOlli World, The Outer Worlds, and Ancestors: The Humankind Odyssey. For mobile device users, T2 Mobile Games provides free-to-play options like Dragon City, Monster Legends, Two Dots, and Top Eleven. Take-Two's diverse range of products is designed for major gaming platforms, encompassing current and previous generation consoles (PlayStation 4, PlayStation 5, Xbox One, Nintendo Switch), personal computers, and mobile devices (smartphones and tablets). Consumers can purchase these games through traditional physical retail channels, digital storefronts for download, various online platforms, and cloud streaming services.
Financial Metrics — TTWO PE Stock Valuation Data
PE Ratio (TTM)
n/m
PEG Ratio
n/m
Earnings Yield
-0.76%
ROE (TTM)
-8.6%
Revenue/Share (TTM)
$35.92
Debt/Equity
0.84x
Frequently Asked Questions
What is the PE ratio of TTWO?
The trailing twelve-month PE ratio of TTWO reflects how much investors pay per dollar of Take-Two Interactive Software, Inc.'s earnings. This metric is most useful when compared to Electronic Gaming & Multimedia peers and the company's own historical range.
Is TTWO overvalued based on PE ratio?
TTWO's PE of -131.6x combined with a PEG ratio of -1.12 provides a growth-adjusted perspective. TTWO has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Electronic Gaming & Multimedia, a DCF analysis may be more appropriate.
How do I value TTWO stock using PE ratio?
To value Take-Two Interactive Software, Inc. using PE: (1) Compare the current PE (-131.6x) against the Electronic Gaming & Multimedia median to assess relative pricing, (2) check the PEG ratio (-1.12) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of TTWO?
TTWO's PEG ratio is -1.12, calculated by dividing the PE ratio (-131.6x) by the expected earnings growth rate. Because TTWO has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for TTWO stock valuation?
PE ratio gives a quick relative read — how TTWO is priced versus Electronic Gaming & Multimedia peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See TTWO DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Communication Services valuationsP/E and DCF value TTWO with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.