Shares of Take-Two Interactive Software, Inc. (NASDAQ:TTWO) have seen double-digit gains of over 10% on the NASDAQGS over the past few months. While shareholders may be happy with the recent share price increase, the company has a long way to go before it reaches its yearly high again. With many analysts covering this large cap stock, we would expect any price-sensitive announcements to already be priced into the stock’s price. But is the stock still trading at a relatively cheap price? Let’s take a closer look at Take-Two Interactive Software’s valuation and outlook to determine if there is still a bargain opportunity.
Read our latest analysis for Take-Two Interactive Software
What is the opportunity for Take-Two Interactive Software?
Great news for investors! Take-Two Interactive Software is still trading at a fairly cheap price. Our valuation model suggests the stock has an intrinsic value of $231.74, but with it currently trading at $155 on the stock market, there’s still an opportunity to buy now. It’s also important to keep in mind that Take-Two Interactive Software’s share price is likely to be fairly stable compared to the overall market, as evidenced by its low beta. That is, if you think the current share price should move towards its intrinsic value over time, a low beta means that it’s unlikely to reach that level anytime soon, and once it does, it may have a hard time getting back into attractive buying range again.
Do you expect growth for Take-Two Interactive Software?
Future outlook is an important aspect when considering buying a stock, especially for investors looking for growth in their portfolio. While value investors would argue that intrinsic value relative to the price is what matters most, a more compelling investment argument is high growth potential at a low price. Over the next 12 months, Take-Two Interactive Software’s revenue is expected to grow by 85%, suggesting a very optimistic future. This should generate more robust cash flows, which should drive the stock price higher.
What this means for you
Are you a shareholder? TTWO is currently undervalued, so now may be a good time to add to your holdings in the stock. While the outlook is bright, it seems this growth has not yet been fully priced into the share price. However, we should also consider other factors that may explain the current undervaluation, such as the company’s financial position.
Are you a potential investor? If you’ve been keeping an eye on TTWO for a while, now might be the time to invest. It’s not too late to buy TTWO, as its bright future outlook has not yet been fully reflected in its current share price. However, before making any investment decisions, be sure to also consider other factors, such as the strength of its balance sheet, to make an informed purchase.
So if you want to take a closer look at this stock, it’s important to consider the risks it faces. 1 warning sign for Take-Two Interactive Software You should know.
If you are no longer interested in Take-Two Interactive Software, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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This article by Simply Wall St is general in nature. We use only unbiased methodologies to provide commentary based on historical data and analyst forecasts, and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks, and does not take into account your objectives, or your financial situation. We seek to provide long-term focused analysis driven by fundamental data. Note that our analysis may not take into account the latest price sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
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