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US Equities · Finance research note

TTWO — Take-Two Interactive

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2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 2.33%
Profit Margins -4.48%
Return on Equity -10.56%
Return on Assets -0.53%
Free Float 0.18B
Short Int % Utilisation 4.68%

2.2 Growth

Metric Value
Revenue Growth 6.1%
Free Cash Flow 1.45B
EBITDA 50.79 (Ratio)
Enterprise Value 40.04B
EV/Revenue 6.02
EV/EBITDA 50.79

Revenue growth of 6.1% indicates steady, moderate expansion.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* 11.95%
Risk / Std Dev (Ann.)* 31.86%
1-Year Price Return* 6.36%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $246.95
52-Week Range $187.63 – $265.94
Observation Count 251 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

DuPont Model Analysis

The DuPont model decomposes return on equity (ROE) into three operating and capital-structure drivers:

ROE = Net Margin × Asset Turnover × Equity Multiplier

The comparison uses the latest two comparable annual periods available for the issuer, with reported statement amounts shown in US$. Revenue and net income are income-statement flows; total assets and shareholders’ equity are year-end balance-sheet figures. This is a simplified year-end-balance DuPont comparison rather than an average-balance ROE calculation.

DuPont component Calculation FY2026 FY2025
Revenue Reported revenue $6.66B $5.63B
Net income Reported net income $-298.20M $-4.48B
Total assets Year-end reported balance $9.38B $9.18B
Shareholders’ equity Year-end reported balance $3.51B $2.14B
Net margin Net income ÷ revenue -4.48% -79.50%
Asset turnover Revenue ÷ total assets 0.7094x 0.6136x
Equity multiplier Total assets ÷ shareholders’ equity 2.6726x 4.2947x
ROE Net margin × asset turnover × equity multiplier -8.49% -209.52%

Source: Yahoo Finance annual statements. Values are based on the two latest comparable annual periods returned by the source; fiscal period labels use the statement period-end year.

2.5 FCFF DCF Valuation

FCFF DCF exception: Reported operating inputs do not support a stable FCFF DCF. This post deliberately does not publish a mechanical enterprise value or implied per-share value on an unsuitable basis.

Available valuation input Value
Last market price $246.79
Market capitalisation $46.15B
Revenue $6.66B
EBIT -$36.50M
Reported free cash flow $461.50M
FCF yield 1.00%
Net debt / EBITDA 0.78x

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks not rated — FCFF DCF suitability or data-integrity condition not met
Lynch-inspired balance-and-growth checks not rated — FCFF DCF suitability or data-integrity condition not met

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:52:01.710409 UTC; latest reported fiscal period: 2026-03-31 00:00:00. Financial institutions and REITs require sector-specific methods rather than a mechanical FCFF DCF. This is research and analysis only, not personalized financial advice.

2.7 Quantitative Factor Diagnostics

Model basis: Daily issuer USD excess returns are regressed in-sample using ordinary least squares on matching regional Fama–French factors. FF3 estimates market, size, and value loadings; FF5 adds profitability and investment. Coefficients are descriptive historical exposures, not predictions.

Estimation input Value
Regional factor set US
Factor-return currency USD
Issuer-return basis USD adjusted total return
Estimation window 2025-08-19 to 2026-06-30
Aligned daily observations 217
Minimum observation requirement 120
Currency conversion for HK listings not required

Fama–French Three-Factor and Five-Factor Results

Diagnostic FF3 FF5
Annualised alpha 19.55% 10.25%
Adjusted R² 0.17 0.17
Annualised residual volatility 28.59% 28.36%
Factor loading (t-statistic) FF3 FF5
Market excess return (Mkt-RF) 0.44 (2.60) 0.26 (1.37)
Size (SMB) 0.11 (0.49) 0.11 (0.47)
Value (HML) -0.87 (-4.45) -0.68 (-2.85)
Profitability (RMW) NM -0.29 (-1.43)
Investment (CMA) NM -0.31 (-0.87)

Definitions: Mkt-RF is the market return less the risk-free rate; SMB is small minus big; HML is high minus low book-to-market; RMW is robust minus weak profitability; CMA is conservative minus aggressive investment. Factor returns are sourced from the Kenneth R. French Data Library; issuer adjusted-return history is sourced from Yahoo Finance. For Hong Kong listings, adjusted HKD prices are converted into USD with daily USD/HKD closes before return calculation to match the USD regional factor basis. This is an in-sample historical regression; coefficients and t-statistics do not establish causation or predict future returns. This is research and analysis only, not personalized financial advice.

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