Take-Two Interactive Software, Inc. (NASDAQ:TTWO) saw a significant share price rise of 28% in the past couple of months on the NASDAQGS. The company's trading levels have reached its high for the past year, following the recent bounce in the share price. 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. However, what if the stock is still a bargain? Let’s examine Take-Two Interactive Software’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

See 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 18.96% 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 that the stock is really worth $158.66, then there isn’t really any room for the share price grow beyond what it’s currently trading. In addition to this, Take-Two Interactive Software has a low beta, which suggests its share price is less volatile than the wider market.

What kind of growth will Take-Two Interactive Software generate?

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. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. In the upcoming year, Take-Two Interactive Software's earnings are expected to increase by 94%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

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 financial strength of the company. 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 advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. For example, we've discovered 2 warning signs that you should run your eye over to get a better picture of Take-Two Interactive Software.

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 provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.