Latest Ratios: P/E Ratio -126.9x · EV/EBITDA 32.7x · ROE -10.6%. (1998–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $38.4B | $36.6B | $36.3B | $25.3B | $19.1B | $18.0B | $20.5B | $13.5B | $10.9B | $11.0B | $5.5B |
| Enterprise Value | $39.8B | $38.0B | $38.9B | $28.0B | $21.7B | $16.5B | $19.2B | $12.4B | $10.0B | $10.2B | $4.8B |
| P/E Ratio → | -126.87 | — | — | — | — | 42.94 | 34.72 | 33.51 | 32.54 | 63.49 | 82.32 |
| P/S Ratio | 5.77 | 5.50 | 6.44 | 4.72 | 3.57 | 5.12 | 6.06 | 4.38 | 4.07 | 6.15 | 3.07 |
| P/B Ratio | 10.85 | 10.42 | 16.98 | 4.46 | 2.11 | 4.71 | 6.14 | 5.33 | 5.33 | 7.41 | 5.45 |
| P/FCF | 83.27 | 79.30 | — | — | — | 180.61 | 24.25 | 21.41 | 14.00 | 27.16 | 14.15 |
| P/OCF | 61.56 | 58.62 | — | — | 17341.88 | 69.59 | 22.42 | 19.74 | 12.89 | 22.34 | 13.42 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.71 | 6.91 | 5.24 | 4.06 | 4.70 | 5.70 | 4.00 | 3.76 | 5.70 | 2.69 |
| EV / EBITDA | 32.67 | 31.17 | 64.60 | 45.39 | 34.72 | 22.52 | 23.11 | 18.67 | 21.30 | 36.45 | 13.63 |
| EV / EBIT | — | — | — | — | — | 33.62 | 27.92 | 26.65 | 41.71 | 64.35 | 52.36 |
| EV / FCF | — | 82.36 | — | — | — | 165.71 | 22.79 | 19.54 | 12.94 | 25.18 | 12.36 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 54.2% | 54.2% | 54.4% | 41.9% | 42.7% | 56.2% | 54.5% | 50.1% | 42.9% | 49.9% | 42.5% |
| Operating Margin | -1.3% | -1.3% | -13.1% | -21.4% | -21.5% | 13.5% | 18.7% | 13.8% | 7.7% | 7.6% | 5.1% |
| Net Profit Margin | -4.5% | -4.5% | -79.5% | -70.0% | -21.0% | 11.9% | 17.5% | 13.1% | 12.5% | 9.7% | 3.8% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -10.6% | -10.6% | -114.8% | -50.9% | -17.5% | 11.7% | 20.1% | 17.7% | 18.9% | 13.9% | 8.5% |
| ROA | -3.2% | -3.2% | -41.9% | -26.7% | -10.0% | 6.6% | 10.7% | 8.8% | 8.4% | 5.0% | 2.3% |
| ROIC | -1.3% | -1.3% | -8.4% | -8.5% | -12.3% | 16.1% | 27.3% | 24.8% | 16.3% | 20.3% | 23.1% |
| ROCE | -1.4% | -1.4% | -9.6% | -10.5% | -14.0% | 11.5% | 18.8% | 16.4% | 9.6% | 7.8% | 6.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.84 | 0.84 | 1.92 | 0.62 | 0.39 | 0.07 | 0.06 | 0.07 | — | 0.01 | 0.25 |
| Debt / EBITDA | 2.43 | 2.43 | 6.81 | 5.72 | 5.57 | 0.34 | 0.23 | 0.27 | — | 0.03 | 0.72 |
| Net Debt / Equity | — | 0.40 | 1.24 | 0.49 | 0.29 | -0.39 | -0.37 | -0.46 | -0.41 | -0.54 | -0.69 |
| Net Debt / EBITDA | 1.16 | 1.16 | 4.40 | 4.50 | 4.25 | -2.03 | -1.48 | -1.78 | -1.75 | -2.86 | -1.97 |
| Debt / FCF | — | 3.06 | — | — | — | -14.91 | -1.46 | -1.87 | -1.06 | -1.97 | -1.79 |
| Interest Coverage | -0.31 | -0.31 | -25.53 | -25.34 | -8.30 | 20.00 | 64.94 | 88.37 | 29.98 | 7.14 | 4.21 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.24 | 1.24 | 0.78 | 0.94 | 0.65 | 1.84 | 1.89 | 1.71 | 1.45 | 1.40 | 1.30 |
| Quick Ratio | 1.23 | 1.23 | 0.78 | 0.94 | 0.65 | 1.83 | 1.88 | 1.70 | 1.43 | 1.39 | 1.29 |
| Cash Ratio | 0.77 | 0.77 | 0.41 | 0.32 | 0.26 | 1.21 | 1.22 | 0.98 | 0.80 | 0.82 | 0.83 |
| Asset Turnover | — | 0.71 | 0.61 | 0.44 | 0.34 | 0.54 | 0.56 | 0.62 | 0.63 | 0.48 | 0.57 |
| Inventory Turnover | 272.39 | 272.39 | — | — | — | 116.11 | 86.52 | 80.72 | 54.03 | 59.25 | 62.67 |
| Days Sales Outstanding | — | 40.41 | 55.19 | 52.17 | 57.52 | 71.27 | 71.24 | 70.02 | 54.13 | 50.42 | 45.03 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | 2.3% | 2.9% | 3.0% | 3.1% | 1.6% | 1.2% |
| FCF Yield | 1.2% | 1.3% | — | — | — | 0.6% | 4.1% | 4.7% | 7.1% | 3.7% | 7.1% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 1.1% | 0.0% | 0.0% | 3.3% | 1.4% | 0.0% |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 1.1% | 0.0% | 0.0% | 3.3% | 1.4% | 0.0% |
| Shares Outstanding | — | $185M | $175M | $170M | $160M | $117M | $116M | $114M | $115M | $113M | $92M |
Includes 30+ ratios · 29 years · Updated daily
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Quick answers to the most common questions about buying TTWO stock.
Take-Two Interactive Software, Inc.'s current P/E ratio is -126.9x. The historical average is 33.3x.
Take-Two Interactive Software, Inc.'s current EV/EBITDA is 32.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 22.2x.
Take-Two Interactive Software, Inc.'s return on equity (ROE) is -10.6%. The historical average is -2.8%.
Based on historical data, Take-Two Interactive Software, Inc. is trading at a P/E of -126.9x. Compare with industry peers and growth rates for a complete picture.
Take-Two Interactive Software, Inc. has 54.2% gross margin and -1.3% operating margin.
Take-Two Interactive Software, Inc.'s Debt/EBITDA ratio is 2.4x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
GTA VI execution and monetization
Metrics are mathematically derived from official filings.
Margin Compression Amid Investment Phase
Gross margin slipped to 57.5% in Q1 FY2027 from 62.8% a year earlier, while operating margin turned negative at -2.3%, reflecting heavy investment ahead of GTA VI, per the latest quarterly data.
The gross margin decline is consistent with a higher mix of lower-margin mobile revenue from Zynga and platform fees, but the more concerning trend is the persistent negative operating margin, which has now been negative in seven of the last ten quarters. This suggests that the company is deliberately sacrificing near-term profitability to fund a massive development pipeline, with R&D and SG&A growing faster than revenue. Investors should monitor whether the upcoming GTA VI launch can reverse this trend, as the current margin profile implies that the company is still in a heavy investment phase with no immediate operating leverage.
ROIC Trapped in Negative Territory
ROIC has been negative for most of the past ten quarters, with Q1 FY2027 at -0.5%, and the 2025Q4 figure of -2.4% reflecting a one-time impairment, based on reported financials.
The company's return on invested capital has been consistently negative, indicating that it is not yet generating returns above its cost of capital. The 2025Q4 ROIC of -2.4% was distorted by a massive one-time charge, but even excluding that, the trend is weak. This suggests that the Zynga acquisition and the heavy investment in GTA VI have not yet translated into profitable capital deployment. The improvement from -20.8% in 2024Q4 to -0.5% in Q1 FY2027 is encouraging, but it is still far from the double-digit returns that would justify the current valuation premium.
Working Capital Efficiency Under Pressure
The cash conversion cycle shortened to 18 days in Q1 FY2027 from 19 days in Q4 FY2026, but DSO rose to 40 days, indicating slower collections, as per the latest balance sheet data.
The slight improvement in the cash conversion cycle is driven by a reduction in days inventory outstanding, but the increase in days sales outstanding to 40 days suggests that the company is taking longer to collect receivables, which could be a sign of channel stuffing or slower sell-through. The negative free cash flow margin of -12.6% in Q1 FY2027, despite a positive operating margin in the prior quarter, highlights the volatility in working capital, particularly the large swings in deferred revenue. This suggests that the company's cash conversion is heavily dependent on the timing of major game releases and the associated deferral of revenue.
Leverage Elevated but Deleveraging Trend
Debt-to-equity improved to 0.82 in Q1 FY2027 from 1.92 in Q4 FY2025, but interest coverage turned negative at -0.62, indicating that operating income is insufficient to cover interest expense, per the latest balance sheet.
The deleveraging trend is positive, with total debt falling to $2.9B, but the interest coverage ratio of -0.62 in Q1 FY2027 is a red flag, as it means the company's operating losses are not covering its interest obligations. This is partly due to the seasonal nature of the business, but it also reflects the ongoing investment phase. The D/EBITDA ratio of 231.87 in Q1 FY2027 is distorted by negative EBITDA, but the normalized ratio of around 8-15 in prior quarters is still high relative to peers. Investors should monitor whether the company can generate sufficient cash flow from GTA VI to service its debt comfortably.
Liquidity Buffer Thins Ahead of Launch
The current ratio fell to 1.06 in Q1 FY2027 from 1.24 in Q4 FY2026, while cash and equivalents dropped to $1.4B, indicating a tightening liquidity position, as reported in the balance sheet.
The current ratio of 1.06 is barely above 1, suggesting that the company has limited short-term liquidity to absorb unexpected shocks. The quick ratio of 1.04 is similar, indicating that inventory is not a significant factor. The decline in cash and equivalents to $1.4B, combined with negative free cash flow of -$193.8M in Q1 FY2027, suggests that the company is burning cash ahead of the GTA VI launch. While the company has access to credit markets, the thin liquidity buffer could be a concern if the launch is delayed or underperforms.
Misapplied P/E on a Pre-Launch Basis
The trailing P/E of -152.44 is meaningless given negative earnings, and the forward P/E of 36.42 may understate the earnings power of GTA VI, which is not yet reflected in estimates, per current valuation multiples.
The most commonly misapplied ratio for Take-Two is the P/E, because the company is in a pre-launch phase with depressed earnings. The trailing P/E is negative and the forward P/E of 36.42 is based on estimates that may not fully capture the revenue and profit potential of GTA VI, which is expected to launch in November 2025. A more appropriate metric is EV/EBITDA, which at 39.03 is still high but reflects the market's expectation of future growth. Alternatively, analysts should use price-to-book or EV/sales, but these also have limitations. The key is to adjust for the one-time costs and the deferred revenue dynamics to get a clearer picture of the company's normalized earning power.