Take-Two Interactive (TTWO): Revisiting Valuation as GTA VI Hype and Analyst Optimism Lift Long-Term Growth Expectations

Take-Two Interactive Software (TTWO) is back in the spotlight after fresh commentary around Grand Theft Auto VI and a packed release slate reignited interest in the stock and its long term earnings trajectory.

See our latest analysis for Take-Two Interactive Software.

That backdrop helps explain why the share price, now at $248.58, has delivered a robust year to date share price return, while the three year total shareholder return suggests momentum is still very much building around the GTA VI cycle.

If this kind of franchise driven story has your attention, it could be a good moment to see what other gaming and platform names are showing up in high growth tech and AI stocks.

With the share price already up strongly and analysts largely bullish, investors face a familiar dilemma: is Take-Two still trading below its long term potential, or is the GTA VI boom already fully priced in?

Most Popular Narrative Narrative: 10.4% Undervalued

With the shares last closing at $248.58 against a narrative fair value near $277.40, the spotlight shifts to how future earnings power might bridge that gap.

Strategic investments in technology, AI, and content pipeline efficiency, alongside a strong release slate with multiple high profile launches (including Borderlands 4, NBA 2K26, and Mafia: The Old Country), undergird management's outlook for record net bookings and enhanced profitability in the coming years.

Read the complete narrative.

Want to see what is hiding behind that confidence spike? The narrative focuses on aggressive margin expansion and earnings power that rivals market darlings. Curious which growth and profitability bets have to succeed for this valuation to hold up?

Result: Fair Value of $277.40 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, that upside leans heavily on strong execution, and any GTA VI delay or weaker mobile monetization could potentially undermine those aggressive margin and earnings assumptions.

Find out about the key risks to this Take-Two Interactive Software narrative.

Another Angle on Valuation

On our price to sales view, the story looks very different. TTWO trades at about 7.4 times sales, versus 1.3 times for the US entertainment sector and a peer average near 5.6 times, and above a fair ratio closer to 4.6 times, raising the risk that sentiment, not fundamentals, is doing most of the work here.

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Take-Two Interactive Software Narrative

If you see the story differently or want to stress test the assumptions yourself, you can build a full narrative in minutes: Do it your way.

A good starting point is our analysis highlighting 1 key reward investors are optimistic about regarding Take-Two Interactive Software.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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