TTWO — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($215.00)
DCF	$434.95	+102.3%
Graham Number	—	—
Reverse DCF	—	implied g: 12.7%
DDM	—	—
EV/EBITDA	$213.88	-0.5%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.49B

Near-term growth (yrs 1–5)(%)Rev: 24.9% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 9.15%

Computed WACC: 9.15%

Cost of equity (Re)9.57%(Rf 4.30% + β 0.96 × ERP 5.50%)

Cost of debt (Rd)5.63%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)91.90%

Debt weight (D/V)8.10%

Results

Intrinsic Value / share$422.47

Current Price$215.00

Upside / Downside+96.5%

Net Debt (used)$1.15B

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	16.9%	20.9%	24.9%	28.9%	32.9%
7.0%	$483.47	$569.53	$667.52	$778.62	$904.14
8.0%	$383.97	$451.87	$529.13	$616.69	$715.56
9.0%	$315.66	$371.12	$434.18	$505.61	$586.22
10.0%	$266.03	$312.47	$365.23	$424.96	$492.33
11.0%	$228.46	$268.07	$313.05	$363.94	$421.32

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $-22.58

Book Value / share($)Yahoo: $18.89

Results

Graham Number requires positive EPS and positive Book Value per share. EPS is zero or negative.

Graham Number—

Current Price$215.00

Margin of Safety—

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.15%

Terminal growth rate(%)

Computed WACC: 9.15%

Cost of equity (Re)9.57%(Rf 4.30% + β 0.96 × ERP 5.50%)

Cost of debt (Rd)5.63%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)91.90%

Debt weight (D/V)8.10%

Results

Current Price$215.00

Implied Near-term FCF Growth13.2%

Historical Revenue Growth24.9%

Historical Earnings Growth—

Base FCF (TTM)$1.49B

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: —

Dividend growth rate (g)(%)

Required return (r)(%)

Results

This company does not pay a dividend. DDM is not applicable — the intrinsic value shown uses D0 = $0 unless you enter a hypothetical dividend above.

DDM Intrinsic Value / share—

Current Price$215.00

Upside / Downside—

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $826.90M

Target EV/EBITDA multipleCurrent: 49.3×

Net Debt($B)Default: $1.15B

Results

Implied Equity Value / share$213.88

Current Price$215.00

Upside / Downside-0.5%

Implied EV$40.76B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	$1.15B	$1.15B	$1.15B	$1.15B	$1.15B
45.3x	$196.02	$196.02	$196.02	$196.02	$196.02
47.3x	$204.95	$204.95	$204.95	$204.95	$204.95
49.3x	$213.88	$213.88	$213.88	$213.88	$213.88
51.3x	$222.81	$222.81	$222.81	$222.81	$222.81
53.3x	$231.74	$231.74	$231.74	$231.74	$231.74

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