Take-Two Interactive Software: Valuation Revisited Amid Share Price Weakness

Take-Two Interactive Software (TTWO) has seen a 16% drop in its share price over the past month and 17% over the past 3 months. The company's recent weakness comes after a weaker 7-day and 30-day share price return, but its 1-year and 3-year total shareholder return show a different picture. The narrative model suggests TTWO is about 24% undervalued, but its P/S ratio of 6.3x is above the US Entertainment industry, peer average, and fair ratio, indicating richer expectations.