As of May 27, 2025, Take-Two Interactive Software Inc has a Discounted Cash Flow (DCF) derived fair value of $0.00 per share. With the current market price at $224.99, this represents a potential upside of -404.2%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $0.00 |
| DCF Fair Value (10-year) | $0.00 |
| Potential Upside (5-year) | -407.8% |
| Potential Upside (10-year) | -404.2% |
| Discount Rate (WACC) | 6.4% - 8.2% |
Revenue is projected to grow from $5634 million in 03-2025 to $9109 million by 03-2035, representing a compound annual growth rate of approximately 4.9%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 03-2025 | 5634 | 5% |
| 03-2026 | 5940 | 5% |
| 03-2027 | 6297 | 6% |
| 03-2028 | 6721 | 7% |
| 03-2029 | 6983 | 4% |
| 03-2030 | 7577 | 9% |
| 03-2031 | 7943 | 5% |
| 03-2032 | 8261 | 4% |
| 03-2033 | 8537 | 3% |
| 03-2034 | 8931 | 5% |
| 03-2035 | 9109 | 2% |
Net profit margin is expected to improve from -80% in 03-2025 to -62% by 03-2035, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 03-2025 | (4,479) | -80% |
| 03-2026 | (4,142) | -70% |
| 03-2027 | (4,278) | -68% |
| 03-2028 | (4,452) | -66% |
| 03-2029 | (4,513) | -65% |
| 03-2030 | (4,781) | -63% |
| 03-2031 | (4,989) | -63% |
| 03-2032 | (5,165) | -63% |
| 03-2033 | (5,313) | -62% |
| 03-2034 | (5,533) | -62% |
| 03-2035 | (5,619) | -62% |
with a 5-year average of $149 million. Projected CapEx is expected to maintain at approximately 3% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 03-2026 | 173 |
| 03-2027 | 182 |
| 03-2028 | 184 |
| 03-2029 | 200 |
| 03-2030 | 215 |
| 03-2031 | 228 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 57 |
| Days Inventory | 0 |
| Days Payables | 26 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2026 | (4,335) | (470) | 191 | 101 | (4,157) |
| 2027 | (4,472) | (485) | 202 | 0 | (4,189) |
| 2028 | (4,656) | (505) | 216 | 79 | (4,446) |
| 2029 | (4,703) | (512) | 224 | 49 | (4,465) |
| 2030 | (4,976) | (542) | 243 | 74 | (4,751) |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 0.00 | -407.8% |
| 10-Year DCF (Growth) | 0.00 | -404.2% |
| 5-Year DCF (EBITDA) | 0.00 | -100.0% |
| 10-Year DCF (EBITDA) | 0.00 | -100.0% |
Is Take-Two Interactive Software Inc (TTWO) a buy or a sell? Take-Two Interactive Software Inc is definitely a sell. Based on our DCF analysis, Take-Two Interactive Software Inc (TTWO) appears to be overvalued with upside potential of -404.2%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider reducing exposure at the current market price of $224.99.