On July 27, 2026, Take-Two Interactive Software Inc TTWO shares rose 5.3% today, reaching a current price of $243.95. This price movement comes amid a 52-week range of $187.63 to $265.94.
- GF Valueâ„¢ verdict: The current price is $243.95, which indicates a 13.6% overvaluation compared to the GF Valueâ„¢ of $214.75.
- GF Scoreâ„¢: 77/100, suggesting that the stock is above average in terms of its overall quality.
- Most notable signal: Insiders sold $135.3 million in the last three months, indicating a lack of buying interest.
Is TTWO Overvalued or Undervalued?
The current price of Take-Two Interactive Software Inc TTWO at $243.95 is notably higher than the GF Valueâ„¢ estimate of $214.75, indicating that the stock is 13.6% overvalued. This overvaluation suggests that investors may face a higher level of risk if the stock adjusts to reflect its intrinsic value. The GF Valuation label classifies TTWO as "Modestly Overvalued," which further emphasizes the caution investors may need to exercise when considering this stock. GF Valueâ„¢ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
Investors may want to consider the implications of this overvaluation. While there is always the potential for future growth, the current price reflects a market sentiment that may not be sustainable if company performance does not meet investor expectations. The margin of safety is minimal, meaning that there is less room for error in the event of a downturn in performance or broader market conditions.
How Does TTWO's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 36.1x | 35.9x (5-Year Median) |
Take-Two's current forward P/E of 36.1x is slightly above its 5-year median P/E of 35.9x, indicating that the stock is trading at a higher valuation than it has historically. This P/E analysis aligns with the GF Valueâ„¢ verdict, reinforcing the notion that the stock is overvalued at present.
What Does TTWO's GF Scoreâ„¢ Tell Us?
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 77/100 |
| Financial Strength | 5/10 |
| Profitability | 6/10 |
| Growth | 6/10 |
| Valuation | 7/10 |
| Momentum | 7/10 |
The GF Score™ of 77/100 reflects a solid performance across various metrics, particularly in Valuation (7/10) and Momentum (7/10), indicating that the stock has shown strength in its recent price movements. However, the Financial Strength score of 5/10 suggests that there are concerns regarding the company’s financial health that investors should consider. Overall, while the company demonstrates potential for growth, the weaknesses in financial strength may pose risks to long-term stability.
What Are Insiders Doing with TTWO Stock?
Over the last three months, insiders have sold $135.3 million worth of TTWO stock, with no noticeable buying activity observed. This pattern of insider selling may signal a lack of confidence among company executives regarding the stock's future prospects. Insider activity can often serve as an important indicator of sentiment within the company, and the absence of buying suggests that insiders may not view the current valuation as favorable.
What This Means for Investors
Based on the GF Valueâ„¢ assessment, Take-Two Interactive Software Inc TTWO is currently overvalued. With a current price of $243.95 compared to the GF Valueâ„¢ of $214.75, this indicates a significant premium that investors are paying for the stock relative to its intrinsic value. Caution is advised, particularly given the recent insider selling activity and the modestly overvalued status of the stock.
For the complete analysis, visit the Take-Two Interactive Software Inc TTWO stock page. You can also explore the GF Valueâ„¢ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions
What is TTWO's GF Scoreâ„¢?
TTWO has a GF Scoreâ„¢ of 77/100, indicating that it is above average in terms of quality and potential long-term returns.
Is TTWO overvalued or undervalued?
TTWO is currently overvalued, with a GF Valueâ„¢ estimate of $214.75 compared to its current price of $243.95, representing a 13.6% overvaluation.
What is TTWO's P/E ratio?
TTWO's current forward P/E ratio is 36.1x, which is slightly above its 5-year median P/E of 35.9x, indicating the stock is trading at a higher valuation than its historical average.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
