Take-Two Interactive Software, Inc. (TTWO) Company Bio
Take-Two Interactive develops games, content and online services for Internet-connected consoles, personal computers, mobile phones and tablets. Some of its well-known brands include Grand Theft Auto, Max Payne, Midnight Club, and Red Dead. The company was founded in 1993 and is based in New York, New York.
TTWO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Take Two Interactive Software Inc. To summarize, we found that Take Two Interactive Software Inc ranked in the 31th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Take Two Interactive Software Inc ended up being:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 99. Notably, its equity weight is greater than 90.2% of US equities in the Technology sector yielding a positive free cash flow.
The business' balance sheet suggests that 1% of the company's capital is sourced from debt; this is greater than merely 5.82% of the free cash flow producing stocks we're observing.
Take Two Interactive Software Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -9.8. This coverage rate is greater than that of merely 5.42% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as TTWO, try QCOM, TER, ORCL, BELFA, and IT.