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Should You Buy TAKE-TWO INTERACTIVE SOFTWARE, INC Common Stock (TTWO) Stock Wednesday?

Wednesday, February 01, 2023 12:43 PM | InvestorsObserver Analysts

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Should You Buy TAKE-TWO INTERACTIVE SOFTWARE, INC Common Stock (TTWO) Stock Wednesday?

TAKE-TWO INTERACTIVE SOFTWARE, INC Common Stock (TTWO) receives a weak valuation score of 25 from InvestorsObserver analysis. Our proprietary scoring system considers the overall health of the company by looking at the stock's price, earnings, and growth rate to determine if it represents a good value. TTWO holds a better value than 25% of stocks at its current price. Investors who are focused on long-term growth through buy-and-hold investing will find the Valuation Rank especially relevant when allocating their assets.

Valuation Rank - 25
TTWO gets a 25 Valuation Rank today. Find out what this means to you and get the rest of the rankings on TTWO!

Metrics Analysis

TTWO has a trailing twelve month Price to Earnings (PE) ratio of -1024.2. The historical average of roughly 15 shows a good value for TTWO stock as investors are paying lower share prices relative to the company's earnings. TTWO's low trailing PE ratio shows that the firm has been trading below its fair market value recently. Its trailing 12-month earnings per share (EPS) of -0.11 more than justifies the stock's current price. However, trailing PE ratios do not factor in the company's projected growth rate, resulting in many newer firms having high PE ratios due to high growth potential enticing investors despite inadequate earnings.
TTWO's 12-month-forward PE to Growth (PEG) ratio of 3.15 is considered a poor value as the market is overvaluing TTWO in relation to the company's projected earnings growth due. TTWO's PEG comes from its forward price to earnings ratio being divided by its growth rate. A PEG ratio of 1 represents a perfect correlation between earnings growth and share price. Due to their incorporation of more fundamentals of a company's overall health and focusing on the future rather than the past, PEG ratios are one of the most used valuation metrics by analysts today.

Summary

TTWO's valuation metrics are weak at its current price due to a overvalued PEG ratio due to strong growth. TTWO's PE and PEG are worse than the market average resulting in a below average valuation score. Click Here to get the full Report on TAKE-TWO INTERACTIVE SOFTWARE, INC Common Stock (TTWO) stock.

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