/
DCF Valuation
Base-case fair value
$90.32
Intrinsic $120.42 · 25% MOS
Current price: $239.28
Base-case summary
Our base-case DCF for Take Two Interactive Software Inc (TTWO) projects 10 years of free cash flow growth at 20.0% for years 1–5 and 10.0% for years 6–10, anchored to 35.9% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $462M in trailing free cash flow, this produces an intrinsic value of $120.42 per share. A 25% safety margin gives a fair value of $90.32, suggesting the stock is currently 62% overvalued against the $239.28 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$462M
Cash & equivalents
$2.0B
Total debt
$3.0B
Shares outstanding
185M