Take-Two Interactive SoftwareFRA:TKE -0.18%74 Gross Margin % is 55.88% as of Mar. 2026, which is 12% above its 10-year median of 49.99. GuruFocus rates FRA:TKE with a GF Score™ of 74/100 and a GF Value™ of €184.47 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 497 Interactive Media companies, Take-Two Interactive Software ranks worse than 54.53% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Take-Two Interactive Software had a gross margin of 55.88% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Take-Two Interactive Software Gross Margin % Related Terms
Take-Two Interactive Software Gross Margin % 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.
FRA:TKE vs EA, RBLX, NTES: Gross Margin % Comparison
For the Electronic Gaming & Multimedia subindustry, Take-Two Interactive Software's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Take-Two Interactive Software's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Take-Two Interactive Software's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Take-Two Interactive Software (FRA:TKE) has a Gross Margin % of 55.88% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Take-Two Interactive Software and its competitors. This is 12% above median its historical median of 49.99. Over the past decade, Take-Two Interactive Software's Gross Margin % has ranged from 41.91 to 57.23. According to the industry distribution chart, Take-Two Interactive Software ranks #271 out of 497 companies in the Interactive Media industry, placing it in the top 54.5%.
Is Take-Two Interactive Software's Gross Margin % too high?
Take-Two Interactive Software's current Gross Margin % of 55.88% is 12% above median its 10-year median of 49.99. Over the past 10 years, this metric has ranged from a low of 41.91 to a high of 57.23. The Interactive Media industry median Gross Margin % is 62.58. Take-Two Interactive Software's value of 55.88% is 10.7% below this industry median. Based on the distribution chart, Take-Two Interactive Software ranks #271 out of 497 companies in the Interactive Media industry, which is below the industry midpoint. Overall, Take-Two Interactive Software has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Take-Two Interactive Software's Gross Margin % compare to EA and RBLX?
According to the Interactive Media industry distribution chart, Take-Two Interactive Software ranks #271 out of 497 companies for Gross Margin %. This places Take-Two Interactive Software in the lower half of its industry. The industry median Gross Margin % is 62.58. Take-Two Interactive Software's value of 55.88% is 10.7% below this benchmark. Historically, Take-Two Interactive Software's own Gross Margin % has ranged from 41.91 to 57.23 over the past decade. While the company's 10-year median is 49.99 vs. the industry median of 62.58, Take-Two Interactive Software has consistently been below 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 Gross Margin % for an Interactive Media company?
The median Gross Margin % among Interactive Media companies is 62.58, based on 497 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Take-Two Interactive Software's current Gross Margin % of 55.88% is 10.7% below 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Take-Two Interactive Software and its competitors. For the Interactive Media industry, the median Gross Margin % is 62.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Take-Two Interactive Software's current Gross Margin % is 55.88%, which is 12% above median its own 10-year median of 49.99. 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 (FRA:TKE) is currently considered Modestly Overvalued. The stock's GF Value™ is €184.47, compared to a current price of €222.80 — trading 20.8% above its estimated fair value. The current Gross Margin % is 55.88%, which is 12% above median its 10-year median of 49.99 and 10.7% below the Interactive Media industry median of 62.58. Take-Two Interactive Software's overall GF Score™ is 74/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Take-Two Interactive Software (FRA:TKE), the current Gross Margin % is 55.88% as of Mar. 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 (FRA:TKE) Overvalued in 2026?
Based on GuruFocus' analysis, Take-Two Interactive Software stock appears to be overvalued.
The current stock price of €222.80 is trading 20.8% above its estimated GF Value™ of €184.47.
GuruFocus considers Take-Two Interactive Software to be Modestly Overvalued.
Key valuation signals for FRA:TKE:
Gross Margin %: 55.88% (12% above median its 10-year median of 49.99)
GF Value™: €184.47 vs. price of €222.80 (20.8% above fair value)
Industry Position: 10.7% below the Interactive Media median (#271 of 497)
No single metric tells the full story. See the FRA:TKE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Take-Two Interactive Software Business Description
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.
74GF Score
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