Take-Two Interactive Software, Inc. ($TTWO) Possible Buy to $30 Confident Investor Rating: Good

Company name Take-Two Interactive Software, Inc.
Stock ticker TTWO
Live stock price [stckqut]TTWO[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Good
EPS growth Good
P/E growth Good
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $36.03
Target stock price (averages with growth) $39.48
Target stock price (averages with no growth) $24.5
Target stock price (manual assumptions) $31.12

The following company description is from Google Finance: http://www.google.com/finance?q=ttwo

Take-Two Interactive Software, Inc. is a developer, publisher and marketer of interactive entertainment for consumers worldwide. The Company develops and publishes products through its two wholly owned labels Rockstar Games and 2K. It’s products are designed for console gaming systems such as Sony’s PlayStation 3 (PS3), Microsoft’s Xbox 360 (Xbox 360) and Nintendo’s Wii (Wii) and Wii U (Wii U); handheld gaming systems such as Nintendo’s DS (DS) and Sony’s PlayStation Portable (PSP); and personal computers including Smartphone’s and tablets. It delivers its products through physical retail, digital download, online platforms and cloud streaming services. Rockstar Games is the developer and publisher of the brand, Grand Theft Auto, as well as other franchises, including L.A. Noire, Max Payne, Midnight Club and Red Dead.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Take-Two Interactive Software, Inc.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Take-Two Interactive Software, Inc. calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $23.32
  • Growth: 0.17
  • Current EPS (TTM): $1.27
  • P/E: 18
  • Future EPS Calc: $2.78
  • Future Stock Price Calc: $50.11
  • Target stock price: $31.12

I hope that this makes you a better investor. [/s2If]

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