What is Take-Two Interactive Software, Inc. (TTWO) DCF Fair Value and Intrinsic Value in 2026?

Take-Two Interactive Software, Inc. (TTWO) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is Take-Two Interactive Software, Inc.'s historical Return on Invested Capital (ROIC) and Moat Rating?

Take-Two Interactive Software, Inc. operates in the Communication Services sector (Electronic Gaming & Multimedia) with an economic moat rating of NARROW. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is Take-Two Interactive Software, Inc.'s financial health rating and Piotroski F-Score?

Take-Two Interactive Software, Inc.'s balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor Take-Two Interactive Software, Inc. (TTWO) for quarterly SEC filing thesis breaks?

LocalAlpha audits Take-Two Interactive Software, Inc.'s 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksTTWO

TTWO

Take-Two Interactive Software, Communication Services / Electronic Gaming & MultimediaINTACT

Take-Two Interactive Software, Inc. develops, publishes, and markets interactive entertainment solutions for consumers worldwide. The company develops and publishes action/adventure products under the Grand Theft Auto, LA Noire, Max Payne, Midnight Club, and Red Dead Redemption names, as well as other franchises. It also publishes various entertainment properties across various platforms and a range of genres, such as shooter, action, role-playing, strategy, sports, and family/casual entertainment under the BioShock, Mafia, Sid Meier's Civilization, XCOM series, Borderlands, and Tiny Tina's Wonderland names. In addition, the company publishes sports simulation titles comprising NBA 2K series, a basketball video game; the WWE 2K professional wrestling series; mobile titles, including WWE SuperCard; and PGA TOUR 2K. Further, it offers free-to-play mobile games, such as CSR Racing, Dragon City, Empires & Puzzles, FarmVille 3, Game of Thrones: Legends, Golf Rival, Harry Potter: Puzzles & Spells, Hit It Rich!, Match Factory!, Merge Dragons!, Merge Magic!, Monster Legends, NBA 2K, Toon Blast, Top Eleven, Wizard Of Oz Slots Casino, Toy Blast, Words With Friends, and Zynga Poker; and Color Block Jam. The company's products are designed for console gaming systems; and mobiles, such as smartphones, tablets, and personal computers. It provides its products through physical retail, digital download, online platforms, and cloud streaming services. Take-Two Interactive Software, Inc. was incorporated in 1993 and is based in New York, New York.

Share Price

$219.20

52W: $187.63 - $265.94

DCF Fair Value

$121.65

-80.2% Premium

Thesis Hub

P/E (TTM)

20x

ROIC

Operating Margin

0.5%

FCF Yield

3.1%

Debt / Equity

0.82x

Piotroski Score

6/9

Altman Z-Score

3.01

Market Cap

$41B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($121.65)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$121.65

MOS Buy Target (-25%)

$91.24

Valuation Overlays: DCF Fair Value ($121.65) 25% MOS Buy Target ($91.24)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$219.20

DCF Fair Value

$121.56

-80.3% Premium

Starting Free Cash Flow ($M)$1,256M

$100M$1,256M (Reported)$50,000M

Stage 1 Growth (Years 1-5)5.3%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$1,100M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$10.3B

PV of Terminal Value

$13.5B

Implied Enterprise Value

$23.8B

Implied Equity Value

$22.7B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$1,323	$1,393	$1,466	$1,544	$1,626	$1,699	$1,776	$1,856	$1,939	$2,026
Present Value (PV)	$1,213	$1,172	$1,132	$1,094	$1,057	$1,013	$971	$931	$893	$856

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number

N/A

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

Not calculable here: the formula takes a square root of EPS × book value, so it breaks down when trailing earnings (or book value) are negative. A company losing money has no defensive-investor price under Graham's classic test — lean on the DCF and solvency scores instead.

EPS: $-1.74BVPS: $18.94

Revised Graham Formula

N/A

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings2.9% Yield

$6.38 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $1.2BYield: 2.9%

Reverse DCF: Market Growth Expectation

FAIR BARRIER

12.1% CAGR (Next 10 Yrs)

At the current price of $219.20, the market is assuming the business will compound Free Cash Flow at 12.1% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

ℹ Fair expectations: Requires steady execution.

Autonomous Thesis Underwriting

Surveil TTWO with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Take-Two Interactive Software, . If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 0.5% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Take-Two Interactive Software, (TTWO) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Take-Two Interactive Software, .

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Take-Two Interactive Software, has an estimated DCF intrinsic fair value of $121.65 per share compared to its current market price of $219.20. This represents an estimated 80.2% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $N/A.