Built from weaker models, sales multiples or analyst targets, so treat it as a rough guide.
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Valued as a mature, profitable company: Discounted cash flow, P/E comparison, and EV/EBITDA comparison.
ACCE opinionTake-Two Interactive Software Inc. Common Stock (TTWO)
Fair value (3 models)
Not available
ACCE price target
$218
Rating
Not rated
Horizon
12 months
ACCE price target published on 18 Oct 2026, 01:52 CEST; previously $230 since 21 Sept 2026, 00:00 CEST.
Price used: $204 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, EV/EBITDA comparison, and P/E comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
ACCE score
29
out of 100
Analysts
97% buy
29 covering
1-year return
-20.0%
Dividend yield
0.00%
Take-Two Interactive Software Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Take-Two publishes Grand Theft Auto, NBA 2K, Borderlands and Red Dead Redemption, and it owns Rockstar Games and 2K, which gives it a franchise library few publishers can match. The competitive edge is that a handful of titles have multi-year, multi-platform sell-through, so the company can monetize one successful launch across console, PC and recurring online spend for years. The near-term driver is Grand Theft Auto VI, which Take-Two has scheduled for release, and its reception will set the revenue and margin trajectory for the next cycle. Right now the business is priced at a forward P/E of 20.3 with revenue growing only 2.0% and an operating margin of 0.5%, so the market is paying for a launch that has not happened while the current earnings base is thin. Our score of 30/100 reflects that gap, so the name merits a deeper look only if the reader is comfortable underwriting the GTA VI timing and its margin payoff.
⚠ Investor warnings · 4 flagsAI-assisted·How I use AI
high
Earnings collapse and negative profitability
Earnings down 49.7% YoY; net margin -4.8% and ROE -9.0%. Operating margin barely positive at 0.5% despite 57% gross margin, signaling cost control issues.
high
Valuation disconnect and ACCE score deterioration
EV/EBITDA 52.5x is extreme; P/S 6.0x elevated for 2% revenue growth. ACCE score fell 5 points in 90 days (38 to 33), now in bottom quartile.
moderate
Sequential revenue contraction
QoQ revenue down 12.3% despite positive YoY growth of 2%, suggesting recent momentum loss or seasonal weakness not yet resolved.
moderate
High leverage with thin margins
Debt/Equity 0.82 combined with negative net margin and operating margin near zero leaves little buffer for further earnings pressure.
AI research notes
AI-assisted·How I use AIWritten Oct 11, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Analyst consensus sees 34.2% upside to $286.44, with 97% of analysts rating the stock Buy or Strong Buy.
The company generated $1.3B in free cash flow over the last 12 months despite current margin pressure.
Five-year average revenue growth of 8.4% per year shows the core business has expanded substantially over time.
Why it could disappoint
Latest earnings missed expectations by 112.5%, with actual EPS of negative 0.01 versus expected positive 0.08.
The company has negative net margin of 4.8% and negative ROE of 9.0%, destroying shareholder value currently.
Year-over-year revenue growth slowed to 2.0% while share count diluted 5.8%, compressing per-share metrics further.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 9, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where TTWO's valuation models land
Price
$203.69
Model fair valueConfidence: low
about $43.85
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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