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Take-Two Interactive SoftwareTTWO +6.04%78 Debt-to-EBITDA is 2.48 as of Jun. 2026, which is 629% above its 10-year median of 0.34. GuruFocus rates TTWO with a GF Score™ of 78/100 and a GF Value™ of $219.18 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 302 Interactive Media companies, Take-Two Interactive Software ranks worse than 75.17% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Take-Two Interactive Software's Debt-to-EBITDA or its related term are showing as below:
TTWO'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -1.96 Med: 0.34 Max: 6.12
Current: 2.39
During the past 13 years, the highest Debt-to-EBITDA Ratio of Take-Two Interactive Software was 6.12. The lowest was -1.96. And the median was 0.34.
TTWO's Debt-to-EBITDA is ranked worse than 75.17% of 302
companies
in the Interactive Media industry
Industry Median: 0.65
vs TTWO: 2.39
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Take-Two Interactive Software Debt-to-EBITDA Related Terms
Take-Two Interactive Software Debt-to-EBITDA Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Electronic Gaming & Multimedia subindustry, Take-Two Interactive Software's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Take-Two Interactive Software Debt-to-EBITDA vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Take-Two Interactive Software's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Take-Two Interactive Software's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Jun. 2026) EBITDA data.
Take-Two Interactive Software (TTWO) has a Debt-to-EBITDA of 2.48 as of Jun. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Take-Two Interactive Software. This is 629% above median its historical median of 0.34. According to the industry distribution chart, Take-Two Interactive Software ranks #227 out of 302 companies in the Interactive Media industry, placing it in the top 75.2%.
Is Take-Two Interactive Software's Debt-to-EBITDA too high?
Take-Two Interactive Software's current Debt-to-EBITDA of 2.48 is 629% above median its 10-year median of 0.34. The Interactive Media industry median Debt-to-EBITDA is 0.65. Take-Two Interactive Software's value of 2.48 is 281.5% above this industry median. Based on the distribution chart, Take-Two Interactive Software ranks #227 out of 302 companies in the Interactive Media industry, which is in the bottom quartile relative to peers. Overall, Take-Two Interactive Software has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Take-Two Interactive Software's Debt-to-EBITDA compare to RBLX and EA?
According to the Interactive Media industry distribution chart, Take-Two Interactive Software ranks #227 out of 302 companies for Debt-to-EBITDA. This places Take-Two Interactive Software in the lower half of its industry. The industry median Debt-to-EBITDA is 0.65. Take-Two Interactive Software's value of 2.48 is 281.5% above this benchmark. While the company's 10-year median is 0.34 vs. the industry median of 0.65, Take-Two Interactive Software has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for an Interactive Media company?
The median Debt-to-EBITDA among Interactive Media companies is 0.65, based on 302 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Take-Two Interactive Software's current Debt-to-EBITDA of 2.48 is 281.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Take-Two Interactive Software. For the Interactive Media industry, the median Debt-to-EBITDA is 0.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Take-Two Interactive Software's current Debt-to-EBITDA is 2.48, which is 629% above median its own 10-year median of 0.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Take-Two Interactive Software stock overvalued right now?
Based on GuruFocus' analysis, Take-Two Interactive Software (TTWO) is currently considered Modestly Overvalued. The stock's GF Value™ is $219.18, compared to a current price of $246.50 — trading 12.5% above its estimated fair value. The current Debt-to-EBITDA is 2.48, which is 629% above median its 10-year median of 0.34 and 281.5% above the Interactive Media industry median of 0.65. Take-Two Interactive Software's overall GF Score™ is 78/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Take-Two Interactive Software (TTWO), the current Debt-to-EBITDA is 2.48 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Take-Two Interactive Software (TTWO) Overvalued in 2026?
Based on GuruFocus' analysis, Take-Two Interactive Software stock appears to be overvalued.
The current stock price of $246.50 is trading 12.5% above its estimated GF Value™ of $219.18.
GuruFocus considers Take-Two Interactive Software to be Modestly Overvalued.
Key valuation signals for TTWO:
Debt-to-EBITDA: 2.48 (629% above median its 10-year median of 0.34)
GF Value™: $219.18 vs. price of $246.50 (12.5% above fair value)
Industry Position: 281.5% above the Interactive Media median (#227 of 302)
No single metric tells the full story. See the TTWO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Take-Two is one of the largest global developers and publishers of video games, with labels including Rockstar, 2K, and Zynga. Grand Theft Auto is the firm's biggest franchise, accounting for about 30% of total sales for the past decade. NBA 2K is the industry's dominant basketball video game, with Take-Two releasing a new version annually. Other notable franchises include Red Dead Redemption, Borderlands, and Civilization. Typically, more than three-fourths of the firm's sales are from in-game spending, with the remainder coming from initial game sales. Since acquiring Zynga in 2022, mobile makes up about half of total sales.
78GF Score
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