Take-Two Interactive Software Stock To $163?
Take-Two Interactive Software (TTWO) stock has fallen 8.1% during the past day, and is currently trading at $232.00. Our multi-factor assessment suggests that it may be time to sell TTWO stock. We have, overall, a pessimistic view of the stock, and a price of $163 may not be out of reach. We believe there are a few things to fear in TTWO stock given its overall Moderate operating performance and financial condition. But keeping in mind its High valuation, we think that the stock is Unattractive.
Below is our assessment:
| CONCLUSION | |
|---|---|
| What you pay: | |
| Valuation | High |
| What you get: | |
| Growth | Strong |
| Profitability | Very Weak |
| Financial Stability | Very Strong |
| Downturn Resilience | Weak |
| Operating Performance | Moderate |
| Stock Opinion | Unattractive |
The question isn’t where TTWO stock goes, but how your portfolio is positioned. See how Trefis High Quality Portfolio and our asset allocation strategy of our Boston-based, wealth management partner prepare you.
Let’s get into details of each of the assessed factors but before that, for quick background: With $42 Bil in market cap, Take-Two Interactive Software provides interactive entertainment solutions worldwide through various labels, distributing products via physical retail, digital downloads, online platforms, and cloud streaming services.
[1] Valuation Looks High
| TTWO | S&P 500 | |
|---|---|---|
| Price-to-Sales Ratio | 7.3 | 3.2 |
| Price-to-Earnings Ratio | -10.0 | 23.6 |
| Price-to-Free Cash Flow Ratio | -721.9 | 20.0 |
This table highlights how TTWO is valued vs broader market. For more details see: TTWO Valuation Ratios
[2] Growth Is Strong
- Take-Two Interactive Software has seen its top line grow at an average rate of 16.9% over the last 3 years
- Its revenues have grown 7.3% from $5.4 Bil to $5.8 Bil in the last 12 months
- Also, its quarterly revenues grew 12.4% to $1.5 Bil in the most recent quarter from $1.3 Bil a year ago.
| TTWO | S&P 500 | |
|---|---|---|
| 3-Year Average | 16.9% | 5.5% |
| Latest Twelve Months* | 7.3% | 6.0% |
| Most Recent Quarter (YoY)* | 12.4% | 7.2% |
This table highlights how TTWO is growing vs broader market. For more details see: TTWO Revenue Comparison
[3] Profitability Appears Very Weak
- TTWO last 12 month operating income was $-587 Mil representing operating margin of -10.1%
- With cash flow margin of 1.7%, it generated nearly $101 Mil in operating cash flow over this period
- For the same period, TTWO generated nearly $-4.2 Bil in net income, suggesting net margin of about -72.9%
| TTWO | S&P 500 | |
|---|---|---|
| Current Operating Margin | -10.1% | 18.8% |
| Current OCF Margin | 1.7% | 20.5% |
| Current Net Income Margin | -72.9% | 13.0% |
This table highlights how TTWO profitability vs broader market. For more details see: TTWO Operating Income Comparison
[4] Financial Stability Looks Very Strong
- TTWO Debt was $3.5 Bil at the end of the most recent quarter, while its current Market Cap is $42 Bil. This implies Debt-to-Equity Ratio of 8.3%
- TTWO Cash (including cash equivalents) makes up $2.0 Bil of $9.7 Bil in total Assets. This yields a Cash-to-Assets Ratio of 21.0%
| TTWO | S&P 500 | |
|---|---|---|
| Current Debt-to-Equity Ratio | 8.3% | 21.0% |
| Current Cash-to-Assets Ratio | 21.0% | 7.1% |
[5] Downturn Resilience Is Weak
TTWO has fared worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.
2022 Inflation Shock
- TTWO stock fell 56.1% from a high of $213.34 on 8 February 2021 to $93.57 on 8 November 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 18 February 2025
- Since then, the stock increased to a high of $262.29 on 20 October 2025 , and currently trades at $232.00
| TTWO | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -56.1% | -25.4% |
| Time to Full Recovery | 833 days | 464 days |
2020 Covid Pandemic
- TTWO stock fell 23.2% from a high of $130.39 on 21 January 2020 to $100.15 on 20 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 11 May 2020
| TTWO | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -23.2% | -33.9% |
| Time to Full Recovery | 52 days | 148 days |
2008 Global Financial Crisis
- TTWO stock fell 79.7% from a high of $27.65 on 5 June 2008 to $5.62 on 3 March 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 24 November 2014
| TTWO | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -79.7% | -56.8% |
| Time to Full Recovery | 2092 days | 1480 days |
But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read TTWO Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.