Take-Two Interactive Software Inc (TTWO) stock analysis
Take-Two Interactive Software Inc (TTWO) clears 2 of this site's 8 mechanical value filters, 0 of 8 Buffett-style checks and 0 of 5 Lynch-style checks. At $207.81 it trades 324.9% above this site's neutral DCF value (a margin of safety of -324.9%). Its earnings quality rates Mixed and it returns −0.8% to shareholders net of dilution. Figures are as of October 23, 2026, from SEC filings and market data refreshed weekly; this is educational analysis, not investment advice.
Data as of October 23, 2026. Refreshed weekly from SEC filings and market data.
What does Take-Two do?
Take-Two makes and publishes video games. Its labels include Rockstar Games (Grand Theft Auto, Red Dead Redemption), 2K (NBA 2K, Borderlands, Civilization) and the mobile-game company Zynga.
Brands and businesses it owns
- Rockstar Games
- Grand Theft Auto
- 2K
- NBA 2K
- Borderlands
- Civilization
- Zynga
What stands out about Take-Two?
- The share price implies more than 40% yearly growth. At $207.81, free cash flow per share would have to grow faster than 40% a year, fading to 2.5% by year 10, for this site's DCF to match the price. Change the assumptions.
- Misses 1 of the 8 value filters. It fails Price/Book < 8 (10.68); the other 2 pass and 5 were not evaluated. See every filter.
- Close to its 52-week low. At $207.81, TTWO is 9.6% above its low of $189.69 and 20.8% below its high of $262.29. See the range.
- Weakest against peers: free-cash-flow yield. At 1.4% (peer median 4.8%) it ranks 12th of 13 among media stocks this site tracks. See the ranking.
- Earnings quality: Mixed · 1 flag. Beneish M-score −2.91 · accruals −9.9% of assets · stock comp 4.6% of revenue · share count +4.0% a year. From the latest 10-K (year to Mar 2026). See the Earnings Quality Screener.
How has Take-Two's share price moved?
The interactive price chart needs JavaScript.
Is Take-Two undervalued? The value diligence check
Every value-investing signal this site computes for this stock, gathered in one place: the same real numbers from the tools below, not a new score.
- Margin of safety (DCF) -324.9%
- Wall St. analyst rating Buy · 4.23/5 39 analysts this month: 12 strong buy, 24 buy, 3 hold, 0 sell, 0 strong sell (Finnhub).
- Earnings quality (is the profit real?) Mixed · 1 flag Beneish M-score −2.91 · accruals −9.9% of assets · stock comp 4.6% of revenue · share count +4.0% a year. From the latest 10-K (year to Mar 2026) - see the Earnings Quality Screener for how each check is scored.
- Shareholder yield (cash back to owners) −0.8% net Latest fiscal year (2026): dividends 0.0% + buybacks 0.0% − stock comp 0.8%, as a share of today's market cap. Stock comp outruns what comes back in cash. Over 14 years its split-adjusted share count rose 121%. See Shareholder Yield Leaders.
- Capital needed to grow (See's test) Profit did not grow in 10 years Operating profit $145M → −$2.7B, capital needed −$205M → $3.9B, 2017–2026 (3-year averages); return on capital now −69% before tax. Buffett's See's Candies needed $0.42 per $1 of new profit, FlightSafety $3.20, a typical grower about $5. See Capital-Light Compounders.
- PEG (growth at a reasonable price) n/a (no PEG reported)
- Compounder lenses (4) 0 of 4 · misses capital-light, real profit, cash back, price (n/a) Capital-light growth: not cleared (profit grew -18.6×, under 2×); Profit is real: not cleared (1 earnings-quality flag); Cash to owners: not cleared (−0.8% a year net); Fair price (PEG): cannot be measured (no PEG reported). See Compounders at a Fair Price, which also lets you move the PEG bar.
- Value trap check Clear
- Munger's Inversion Check 2 flags
- Standing vs. sector peers 1 of 5 measures above the median Compared with the 12 other media stocks this site tracks: 0 in the top third, 3 in the bottom third.
How does Take-Two compare with its peers?
1 of 5 measure sits above the median of the 12 other media stocks tracked here, 3 in the bottom third.
- Free-cash-flow yieldhigher is cheaper · peer median 4.8% 1.4% ✕12th of 13
- Return on equityhigher is better · peer median 15% −9% ✕12th of 13
- Net marginhigher is better · peer median 8.7% −4.8% ✕12th of 13
- Revenue growthhigher is better, year on year · peer median 10.8% 15.3% –5th of 13
- Debt / equitylower is safer · peer median 0.57 0.70 –8th of 13
Peers are the stocks this site tracks in the same sector group, not every listed competitor. The bar runs from the weakest peer (left) to the strongest (right); the tick is the middle. Measures that don't apply to a sector (cash-flow yield for banks, debt for financials) are left out.
What would Buffett & Lynch say?
Buffett's checklist is built around durable, profitable businesses bought at sensible prices, and TTWO doesn't clear enough of it yet. Where it comes up short: TTWO isn't clearing the return-on-equity bar he'd want to see right now, and its five-year average return on equity falls short too, so this isn't just a one-off dip, carries more debt relative to equity than he typically tolerates, runs thinner pretax margins than he'd like to see, hasn't grown earnings per share fast enough over five years to impress him, doesn't cover its interest expense as comfortably as he'd want, is trading above what a conservative discounted-cash-flow estimate says it's worth right now, and trades rich relative to owner earnings, the real cash the business could pay out.
- ROE (TTM) > 11% ✕
- ROE (5yr avg) > 11% ✕
- Debt/Equity < 0.5 ✕
- Pretax margin > 15% ✕
- EPS growth (5yr) > 7% ✕
- Interest coverage > 5x ✕
- Trading below intrinsic value (DCF) ✕
- Price vs. owner earnings < 25x ✕
Lynch looked for growth stories that weren't overpriced for that growth, and TTWO falls short of his bar. Where it comes up short: TTWO fails his signature PEG test, he'd call this pricey for the growth on offer, is growing earnings outside the 10–25% range he considered the sustainable sweet spot, is leaning on more debt than he liked a growth story to carry, is asking investors to pay a steep multiple for that growth, and isn't generating free cash flow to match the growth story.
- PEG < 1 n/a
- EPS growth 10%-25% ✕
- Debt/Equity < 0.5 ✕
- P/E < 27 n/a
- Price/FCF < 30 ✕
Quantitative approximations of each investor's documented approach, not endorsed by either investor or their estates - commentary, not this site's actual ranking criteria. Buffett never published a numeric checklist: only 2 of his 8 checks here trace to his own documented concepts ("owner earnings," from his 1986 shareholder letter, and "price is what you pay, value is what you get," his case against fixed P/E/P/B ceilings) - the other 6 (ROE, debt, margins, growth, interest coverage) use commonly-cited thresholds that are not numbers he himself published. The 8 hard filters below (plus the Munger check and Graham margin of safety) are this site's real, mechanical screen and are computed completely independently of the checklists above.
Berkshire Hathaway's own filing
Which of the 8 value filters does Take-Two pass?
- Market Cap > $25B $38.5B
- Trailing P/E < 25 n/a
- PEG Ratio < 1.5 n/a
- Price/Book < 8 10.68
- Price/Sales < 7 5.76
- EPS Growth YoY > -5% n/a
- vs 50-day MA (±12%) Not evaluated †
- vs 200-day MA (±12%) Not evaluated †
What is Take-Two's margin of safety?
-319% on 2026-10-07 → -325% on 2026-10-23 (5 weekly readings).
Where is Take-Two in its 52-week range?
What is the short interest in Take-Two?
9,303,472 shares short as of 2026-09-30 (FINRA settlement date). Reported twice a month, so this only changes roughly every two weeks, not daily.
What could go wrong with Take-Two? Munger's inversion check
"Invert, always invert." Instead of reasons to buy, these are reasons to hesitate, not a verdict, and not everything worth knowing about a business.
- Margin of safety, even in the bull case -151%
- Short interest under 5% of float 5.1%
- Passes most of the 6 fundamental filters 5/6 passed
- Price run-up backed by value, not just momentum +10% off 52wk low
- Debt/equity stable since 2017 0.25 → 0.71
Doesn't cover circle of competence, management quality, or accounting concerns: those need judgment, not data.
How much have Take-Two shareholders gained per year?
Not enough clean earnings history to compute this for TTWO yet - a loss year in the window breaks the growth math rather than faking a number through it.
An earnings-based proxy, not a stock-price total return - it doesn't capture multiple expansion/contraction or reinvested dividends. EPS from TTWO's own 10-K filings; dividend yield is the current trailing yield on today's price, from the same weekly fetch as the rest of this site.
What do Take-Two's 10-year financials show?
From TTWO's own 10-K filings (SEC EDGAR): up to the last 10 fiscal years. Press any year's bars for the exact figures.
Frequently asked questions about Take-Two
What kind of company is Take-Two?
Take-Two makes and publishes video games. Its labels include Rockstar Games (Grand Theft Auto, Red Dead Redemption), 2K (NBA 2K, Borderlands, Civilization) and the mobile-game company Zynga. Brands and businesses it owns include Rockstar Games, Grand Theft Auto, 2K, NBA 2K, Borderlands and Civilization. This site groups it with Media stocks.
Is Take-Two trading above or below its DCF value?
At $207.81, TTWO trades 324.9% above this site's neutral DCF value of $48.91 per share, a margin of safety of −324.9%. That DCF projects free cash flow for 10 years, with growth starting at 8% and fading to 2.5%, discounted at 10%; it is one set of assumptions, not a forecast. Test your own in the Intrinsic Value Calculator.
How many of this site's 8 value filters does Take-Two pass?
TTWO passes 2 of 8. It passes Market Cap > $25B ($38.5B) and Price/Sales < 7 (5.76). It misses Price/Book < 8 (10.68). Trailing P/E < 25, PEG Ratio < 1.5, EPS Growth YoY > -5%, vs 50-day MA (±12%) and vs 200-day MA (±12%) were not evaluated, because the moving-average checks only run on stocks that clear the fundamentals first. The 8-filter list shows every stock that passes all of them.
Are Take-Two's reported earnings reliable?
This site's earnings-quality check rates TTWO Mixed · 1 flag. Beneish M-score −2.91 · accruals −9.9% of assets · stock comp 4.6% of revenue · share count +4.0% a year. From the latest 10-K (year to Mar 2026). Concerns: share dilution (flagged). The five checks are the Beneish M-score (manipulation risk), accruals, cash conversion, stock-based compensation and share dilution; the Earnings Quality Screener shows how each is graded.
When does Take-Two report earnings next?
Take-Two's next earnings report is expected on November 9, 2026, with analysts expecting earnings of $0.96 per share. Dates come from the Finnhub earnings calendar and can move. In its last 4 quarters it beat the estimate 4 times, by an average of +21.7%.
How heavily is Take-Two stock sold short?
As of September 30, 2026, 5.1% of TTWO's float was sold short (9,303,472 shares, 3.5 days to cover), up 12.4% from the prior reporting period. FINRA publishes short interest twice a month, so it changes about every two weeks; this site flags anything above 5% of the float.
Where do these numbers come from?
- Financial statements: Take-Two's 10-K annual report for the year ended Mar 31, 2026, filed May 22, 2026 (filing index). Every earlier year in the 10-year financials comes from the company's older 10-K filings, all listed on SEC EDGAR.
- Prices and market data: quotes, P/E and analyst ratings from Finnhub; daily price history and the 52-week range from Twelve Data, both refreshed weekly. Short interest comes from FINRA, reported twice a month.
- How to check a figure: click any number in the card above to see its exact source, and read the Editorial Standards for every rule behind the checks.
About this Take-Two Interactive Software Inc analysis
This page shows every value-investing check the site runs on Take-Two Interactive Software Inc (TTWO) in one place: the 8 mechanical filters, the Buffett and Lynch checklists, a margin of safety from a disclosed DCF, earnings quality, shareholder yield and how it ranks against its sector peers. The numbers come from SEC filings and public market data, refreshed weekly, and the same rules apply to every stock on the stock list. See Editorial Standards for the sources and the rules, or run your own filters in the stock screener.