Take-Two Interactive Software (TTWO): Valuation Perspectives After GTA VI Delay and Earnings Beat

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?

Most Popular Narrative: 15.5% Undervalued

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.

Another View: Multiples Paint a Cautionary Picture

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?

Story Continues

See what the numbers say about this price — find out in our valuation breakdown.NasdaqGS:TTWO PS Ratio as at Nov 2025

Build Your Own Take-Two Interactive Software Narrative

Not convinced by the prevailing outlook or want to chart your own path? Dive into the numbers yourself and shape a unique perspective in just a few minutes, then Do it your way.

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Take-Two Interactive Software.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include TTWO.

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