Take-Two Interactive Software (TTWO) caught investors’ attention after announcing another delay for Grand Theft Auto VI, with the new target now set for a November 2026 launch. This news came even as the company posted strong quarterly earnings.
See our latest analysis for Take-Two Interactive Software.
Despite raising its full-year outlook and beating earnings expectations, Take-Two’s latest delay for Grand Theft Auto VI rattled investors and sent its share price down over 8% in a day. Still, the momentum over the past year has been strong, with a 30% total shareholder return and even more impressive growth over three years. This suggests long-term confidence is intact even as short-term sentiment wobbles.
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With the share price well below recent analyst targets and the company posting robust long-term gains, investors now face a critical question: is this a rare entry point for Take-Two, or has the market already priced in future blockbuster growth?
Take-Two Interactive Software’s most widely followed narrative calculates a fair value that sits well above the last closing price. This growing gap points to increasingly bullish assumptions about future profits and franchise momentum.
Strategic investments in technology, AI, and content pipeline efficiency, alongside a strong release slate with multiple high-profile launches (including Borderlands 4, NBA 2K26, and Mafia: The Old Country), undergird management’s outlook for record net bookings and enhanced profitability in the coming years.
Read the complete narrative.
Want to know what’s driving this surge in analyst confidence? The secret sauce behind the valuation is an ambitious recipe of expanding margins, bold growth projections, and blockbuster-level earnings targets. Find out exactly which financial assumptions are elevating this price forecast. One figure may surprise you.
Result: Fair Value of $274.49 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, blockbuster delays or a slowdown in mobile growth could quickly undermine these optimistic projections and change expectations for Take-Two’s future performance.
Find out about the key risks to this Take-Two Interactive Software narrative.
Looking through the lens of sales-based valuation, Take-Two’s price-to-sales ratio stands at 6.9x. That is far higher than the US Entertainment industry average of 2x, the peer group average of 6.4x, and even the fair ratio of 4.9x. This substantial premium suggests the market is demanding a lot of future growth, which could be risky if expectations shift. Does this signal untapped upside, or is it a warning that the shares are priced for perfection?
