DCF Tool

TTWO

Take-Two Interactive Software, Inc. – Software Publishers
Headquartered in New York City, Take-Two Interactive Software, is a leading developer, publisher and marketer of interactive entertainment for consumers around the globe. Take-Two Interactive Software develops and publish products principally through Rockstar Games, 2K, Private Division, and Social Point. Our products are designed for console systems and personal computers, including smartphones and tablets, and are delivered through physical retail, digital download, online platforms and cloud streaming services.
Analysis Results
Intrinsic Value $88.85
Latest Price $98.98
Relative Value 11% overvalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 18.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 18.8%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 0.585 0.54
2024 0.695 0.592
2025 0.826 0.65
2026 0.981 0.713
2027 1.17 0.782
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 18.8 billion. This corresponds to a present value of 11.6 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.28 billion. Adding in the terminal value gives a total present value of 14.9 billion.

There are presently 168.0 million outstanding shares, so the intrinsic value per share is 88.85.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,871,088,000
Current Cash 2,552,107,000
Current Liabilities 2,104,964,000
Current Debt 0
Non-Cash Working Capital (NCWC) -785,983,000
Change in NCWC -40,207,000
EBIT 474,444,000
Tax Provision 47,376,000
Depreciation and Amortization 279,292,000
Capital Expenditure -158,642,000
Unlevered Free Cash Flow 506,590,146
Current Assets 4,220,515,000
Current Cash 2,731,576,000
Current Liabilities 2,234,715,000
Current Debt 0
Non-Cash Working Capital (NCWC) -745,776,000
Change in NCWC -198,921,000
EBIT 629,112,000
Tax Provision 88,930,000
Depreciation and Amortization 88,550,000
Capital Expenditure -68,923,000
Unlevered Free Cash Flow 367,278,003
Current Assets 3,493,351,000
Current Cash 2,001,667,000
Current Liabilities 2,038,539,000
Current Debt 0
Non-Cash Working Capital (NCWC) -546,855,000
Change in NCWC 148,114,000
EBIT 425,350,000
Tax Provision 53,980,000
Depreciation and Amortization 68,618,000
Capital Expenditure -53,384,000
Unlevered Free Cash Flow 538,614,143
Current Assets 2,827,835,000
Current Cash 1,571,010,000
Current Liabilities 1,951,794,000
Current Debt 0
Non-Cash Working Capital (NCWC) -694,969,000
Change in NCWC 47,162,000
EBIT 201,714,000
Tax Provision -101,052,000
Depreciation and Amortization 39,726,000
Capital Expenditure -66,969,000
Unlevered Free Cash Flow 221,633,000
Current Assets 2,409,177,000
Current Cash 1,424,379,000
Current Liabilities 1,726,929,000
Current Debt 0
Non-Cash Working Capital (NCWC) -742,131,000
Change in NCWC 140,847,000
EBIT 150,319,000
Tax Provision -36,908,000
Depreciation and Amortization 32,202,000
Capital Expenditure -61,557,000
Unlevered Free Cash Flow 261,811,000
Current Assets 2,195,242,000
Current Cash 1,392,328,000
Current Liabilities 1,685,892,000
Current Debt 0
Non-Cash Working Capital (NCWC) -882,978,000
Change in NCWC -438,281,000
EBIT 91,305,000
Tax Provision 9,662,000
Depreciation and Amortization 30,707,000
Capital Expenditure -21,167,000
Unlevered Free Cash Flow -348,898,208
Current Assets 2,045,276,000
Current Cash 1,269,562,000
Current Liabilities 1,220,411,000
Current Debt 0
Non-Cash Working Capital (NCWC) -444,697,000
Change in NCWC -161,696,000
EBIT 60,457,000
Tax Provision -30,048,000
Depreciation and Amortization 28,800,000
Capital Expenditure -37,280,000
Unlevered Free Cash Flow -109,719,000
Current Assets 1,781,308,000
Current Cash 1,098,049,000
Current Liabilities 966,260,000
Current Debt 0
Non-Cash Working Capital (NCWC) -283,001,000
Change in NCWC -272,221,000
EBIT -258,463,000
Tax Provision 6,590,000
Depreciation and Amortization 21,057,000
Capital Expenditure -49,501,000
Unlevered Free Cash Flow -559,128,000
Current Assets 1,399,440,000
Current Cash 935,400,000
Current Liabilities 474,820,000
Current Debt 0
Non-Cash Working Capital (NCWC) -10,780,000
Change in NCWC -137,431,000
EBIT 415,256,000
Tax Provision 14,459,000
Depreciation and Amortization 13,359,000
Capital Expenditure -29,813,000
Unlevered Free Cash Flow 245,408,786
Current Assets 866,152,000
Current Cash 402,502,000
Current Liabilities 336,999,000
Current Debt 0
Non-Cash Working Capital (NCWC) 126,651,000
Change in NCWC 22,038,000
EBIT 5,239,000
Tax Provision 5,050,000
Depreciation and Amortization 10,634,000
Capital Expenditure -16,820,000
Unlevered Free Cash Flow 21,091,000
Current Assets 743,617,000
Current Cash 420,279,000
Current Liabilities 218,725,000
Current Debt 0
Non-Cash Working Capital (NCWC) 104,613,000
Change in NCWC 49,257,000
EBIT -84,266,000
Tax Provision 3,863,000
Depreciation and Amortization 12,123,000
Capital Expenditure -10,786,000
Unlevered Free Cash Flow -33,672,000

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