Image source: Getty Images. <\/p>\n Take-Two is set up for a record year <\/p>\n Management expects fiscal 2027 (ending March 31, 2027) to be “an historic year.” It reiterated guidance for net bookings — the value of games and content sold — of $8 billion to $8.2 billion, up about 21% from last year. <\/p>\n GTA V has sold nearly 235 million units worldwide over the last 13 years, a testament to the size of the franchise’s audience. This tees up GTA VI to sell into a larger installed base of players, which is contributing to the game’s strong preorder trends so far. <\/p>\n The stock already prices in strong sales <\/p>\n When GTA V launched in 2013, Take-Two<\/a> shares traded at about 1.4 times trailing sales<\/a>. At the Nov. 9 close, it traded at 5.7 times fiscal 2026 revenue — more than 4 times higher. <\/p>\n In 2013, investors paid no premium for a game that hadn’t yet shown up in sales. Today, they’re paying up before GTA VI has even launched. <\/p>\n What a repeat of GTA V’s returns would require <\/p>\n It seems like too much to ask for the stock to match the returns after GTA V’s release in 2013. For the stock to deliver the same returns, Take-Two’s market capitalization (share price times shares outstanding) would have to climb from today’s $39 billion to $102 billion in three years and $300 billion in five. <\/p>\n Assuming the stock still trades at 5.7 times sales, revenue would need to reach about $17.5 billion in three years and $51.5 billion in five. <\/p>\n But analysts don’t expect anything close to those figures. The Wall Street consensus has revenue reaching $9.4 billion by fiscal 2029. At the Nov. 9 close, that’s about 4.1 times fiscal 2029 estimates, which isn’t cheap. <\/p>\n A quality video game stock, but don’t expect GTA V-style returns <\/p>\n The biggest risk is that GTA VI is a huge hit but still fails to live up to high expectations in the years following its launch. Take-Two depends on Grand Theft Auto and other hit titles, and a premium valuation leaves little room for disappointment. <\/p>\n To be fair, Take-Two expects over $1 billion in operating cash flow and net cash instead of net debt by the end of the fiscal year. It’s on track to report impressive numbers, but valuation matters. That still puts the stock at about 39 times forward cash flow, which implies a lot of growth. <\/p>\n At these valuation levels, I wouldn’t buy the post-earnings bounce. With growth already priced in, I would wait until Take-Two reports holiday sales for the December quarter next year. That way, investors can avoid the possibility of a negative surprise that tanks the stock and make an investment decision based on actual post-launch game sales rather than guesswork. <\/p>\n Should you buy stock in Take-Two Interactive Software right now? <\/p>\n Before you buy stock in Take-Two Interactive Software, consider this: <\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks<\/a> for investors to buy now\u2026 and Take-Two Interactive Software wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. <\/p>\n Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $341,157!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,037,753!* <\/p>\n Now, it’s worth noting Stock Advisor’s total average return is 834% \u2014 a market-crushing outperformance compared to 207% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. <\/p>\n See the 10 stocks \u00bb<\/a> <\/p>\n *Stock Advisor returns as of November 11, 2026. <\/p>\n John Ballard<\/a> has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Take-Two Interactive Software. The Motley Fool has a disclosure policy<\/a>. <\/p>\n<\/a> <\/p>\n