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Take-Two Interactive Software, Inc. (NASDAQ:TTWO) led the NASDAQGS gainers with a relatively large price hike in the past couple of weeks. The recent jump in the share price has meant that the company is trading at close to its 52-week high. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Today we will analyse the most recent data on Take-Two Interactive Software’s outlook and valuation to see if the opportunity still exists.
View our latest analysis for Take-Two Interactive Software
What's The Opportunity In Take-Two Interactive Software?
According to our valuation model, Take-Two Interactive Software seems to be fairly priced at around 17.62% above our intrinsic value, which means if you buy Take-Two Interactive Software today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is $160.17, there’s only an insignificant downside when the price falls to its real value. Furthermore, Take-Two Interactive Software’s low beta implies that the stock is less volatile than the wider market.
Can we expect growth from Take-Two Interactive Software?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 94% over the next year, the near-term future seems bright for Take-Two Interactive Software. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What This Means For You
Are you a shareholder? It seems like the market has already priced in TTWO’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?
Are you a potential investor? If you’ve been keeping tabs on TTWO, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.