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:
We started the process of determining a valid price forecast for Take Two Interactive Software Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Take Two Interactive Software Inc ranked in the 44th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for TTWO, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 99. Notably, its equity weight is greater than 90.16% 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 5.29% 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 -12.41. This coverage rate is greater than that of merely 7.56% 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 CSCO, FIVN, TEAM, ADI, and OSIS.
A latest dive into Google search trends for Internet and Interactive Entertainment sectors by Baird indicates some ongoing strength in e-commerce and video games, even as COVID-19 cases wane in some (certainly not all) areas, eager to get back to economy reopening activities. The top of the index included week-over-week...
2K, OneTeam Partners (OneTeam) and the National Football League Players Association (NFLPA), today announced a partnership that will allow the label to include National Football League (NFL) players in multiple football games in development and set to launch starting in calendar year 2021, during Take-Two Interactive’s fiscal year 2022.
Private Division, a publishing label of Take-Two Interactive Software, Inc., today announced that they have signed three new publishing agreements with top independent developers Moon Studios, League of Geeks, and Roll7. These partnerships will expand Private Division’s portfolio of titles that includes the Kerbal Space Program franchise, The Outer Worlds, Ancestors: The Humankind Odyssey, and Disintegration. Private Division empowers and supports the industry’s leading creative talent in bringing their visions to life and land to consumers around the world.
Take-Two Interactive (NASDAQ: TTWO) has long been a solid video game stock for investors. It returned almost 400% over the last five years, far outpacing the trading performance of Activision Blizzard (NASDAQ: ATVI) and Electronic Arts (NASDAQ: EA). Here are four charts that highlight Take-Two's path to greater profits and why further improvements should lead to even more returns for investors.