Is Take-Two Interactive Software Inc (TTWO) overvalued?
On Equity Rank's model estimate, TTWO trades 312% above its fair value. Take-Two Interactive Software Inc (TTWO) last closed at $214.87; the multi-method model fair value is $52.10.
| Price | Model fair value | Price vs model |
|---|---|---|
| $214.87 | $52.10 | 312% above |
What the answer rests on
- 0 of 3 valuation methods put TTWO's value above its price and 3 put it below, so the methods mostly agree.
- To justify today's price, TTWO's free cash flow would need to grow about 24.8% a year for ten years (a reverse discounted cash flow).
- Over the past year the price sat below the model fair value on 0% of trading days. The gap ranged from 9% above to 310% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind TTWO's fair value · What prices assume · Other companies