Since December 2025, Take-Two has been in a holding pattern, posting a small loss of 4.7% while floating around $229.26. The stock also fell short of the S&P 500’s 12.4% gain during that period.
Is now the time to buy TTWO? Find out in our full research report, it’s free.
Why Is TTWO a Good Business?
Best known for its Grand Theft Auto and NBA 2K franchises, Take Two (NASDAQ: TTWO) is one of the world’s largest video game publishers.
1. Projected Revenue Growth Is Remarkable
Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite, though some deceleration is natural as businesses become larger.
Over the next 12 months, sell-side analysts expect Take-Two’s revenue to rise by 26.2%. This projection is eye-popping and implies its newer products and services will fuel better top-line performance.
2. EPS Improving Significantly
Analyzing the long-term change in earnings per share (EPS) shows whether a company’s incremental sales were profitable — for example, revenue could be inflated through excessive spending on advertising and promotions.
Although Take-Two’s full-year earnings are still negative, it reduced its losses and improved its EPS by 38.1% annually over the last three years. The next few quarters will be critical for assessing its long-term profitability. An inflection point could be coming soon.
3. Increasing Free Cash Flow Margin Juices Financials
Free cash flow isn’t a prominently featured metric in company financials and earnings releases, but we think it’s telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.
As you can see below, Take-Two’s margin expanded by 10.7 percentage points over the last few years. The company’s improvement shows it’s heading in the right direction, and we can see it became a less capital-intensive business because its free cash flow profitability rose while its operating profitability was flat. Take-Two’s free cash flow margin for the trailing 12 months was 6.9%.
Final Judgment
These are just a few reasons why Take-Two ranks highly on our list. With its shares trailing the market in recent months, the stock trades at 24.4× forward EV/EBITDA (or $229.26 per share). Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
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