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Stocks TTWO DCF valuation

DCF valuation

What is Take Two Interactive Software Inc worth?

With the base-case assumptions below, a discounted cash flow model on Take Two Interactive Software Inc's reported free cash flow gives $77.02 per share. The share price was $201.44 on September 25, 2026, 162% above that value.

Inputs from the filings

Free cash flow, fiscal 2026
$461.5M
Average free cash flow, last 5 years
-$2.9M
Cash
$1.36B
balance sheet of June 30, 2026
Debt
$1.89B
balance sheet of June 30, 2026
Diluted shares, fiscal 2026
183,900,000
Revenue growth per year, last 5 years
14.6%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear9.5%6.0%2.0%10.0%$46.50-77%
Base14.5%8.5%2.5%9.0%$77.02-62%
Bull19.5%11.5%3.0%8.0%$137.80-32%

Sensitivity: base case value per share

Discount rate down the side, growth after year 10 across the top. Everything else as in the base case.

1.5%2.0%2.5%3.0%3.5%
7.0%$100.62$107.96$116.94$128.16$142.59
8.0%$82.90$87.67$93.29$100.05$108.30
9.0%$70.01$73.26$77.02$81.41$86.59
10.0%$60.23$62.54$65.17$68.17$71.63
11.0%$52.57$54.27$56.16$58.30$60.72

Where the presets come from

Base: years 1 to 5 grow at Take Two Interactive Software Inc's revenue growth rate over the last 5 fiscal years (14.6% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.

Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.

Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.

This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.

Adjust the assumptions

Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.

Adjust the assumptions

Take Two Interactive Software Inc company page