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Take-Two Interactive Software (TTWO) was removed from several Russell Value benchmarks, including the Russell 1000 Value and Midcap Value indexes, prompting investors to reevaluate how the stock fits into diversified portfolios.
Check out our latest analysis for Take-Two Interactive Software.
The index deletions come at a time when Take-Two Interactive Software’s stock price has risen sharply, with a 30-day stock price return of 20.24% and a 90-day stock price return of 27.54%. The 1-year total shareholder return of 7.16% and the 3-year total shareholder return of 71.00% indicate momentum that has been building over time, despite short-term shifts in how the stock ranks in value benchmarks.
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After rising 20.24% in 30 days and exiting multiple value indices, the debate surrounding Take-Two Interactive Software is simple: Is the bulk of the revaluation already in the rearview mirror, or is there still significant upside when the valuation resets?
Table of Contents
Most popular narrative: 6.9% underrated
Compared to the last closing price of $257.79, Take-Two Interactive Software’s most followed narrative suggests a fair value near $276.97 based on a detailed look at the games pipeline and the expected shift in profitability.
Take-Two is at a truly crucial turning point. Over many years, the company has made significant investments, including strategic acquisitions, and is close to the moment when it pays off. GTA VI could reshape its financial profile for the better half of the next decade.
Read the full story.
Curious about what lies behind this fair value for Take-Two Interactive Software? The narrative is based on a specific revenue growth, margin profile and future earnings power that are not evident from the headlines.
Result: Fair Value of $276.97 (UNDERVALUED)
Read the entire narrative and understand what lies behind the predictions.
However, Take-Two Interactive Software’s reliance on the release of GTA VI and the fact that the company is currently reporting a net loss means that any failures in execution or weaker demand could quickly call this undervalued story into question.
Learn about the key risks of this narrative from Take-Two Interactive Software.
A different view of Take-Two Interactive Software
The narrative-based fair value of $276.97 suggests that Take-Two Interactive Software is 6.9% undervalued, but the market tells a different picture when looking at revenue-based pricing. With a price-to-earnings ratio of 7.2x versus a peer average of 4.2x and a fair ratio of 3.3x, the stock is trading at a much higher valuation multiple, which could mean less room for error if expectations change.
For investors who want to see how this gap between current prices, competitors and a fair ratio might close over time, it’s worth taking a look. See what the numbers say at this price – find out in our valuation breakdown.
NasdaqGS:TTWO P/S ratio as of July 2026
Next Steps
If the mixed signals at Take-Two Interactive Software are unsettling you, it makes sense to act quickly, review the details and weigh the potential concerns and upside using the 1 key reward and 1 key warning signs
Looking for more investment ideas beyond Take-Two Interactive Software?
Don’t stop with Take-Two Interactive Software. Broaden your range of opportunities now so you don’t rely on a single stock or theme for potential returns.
This article from Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only an unbiased methodology and our articles are not intended as financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term focused analysis based on fundamental data. Note that our analysis may not reflect the latest price-sensitive company announcements or qualitative material. Simply Wall St has no positions in any stocks mentioned.
Companies covered in this article include: TWO.
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https://finance.yahoo.com/markets/stocks/articles/two-interactive-software-ttwo-recast-211617942.html
