Stock Analysis on Net

Take-Two Interactive Software Inc. (NASDAQ:TTWO)

This company has been moved to the archive! The financial data has not been updated since May 20, 2025.

Capital Asset Pricing Model (CAPM)

Microsoft Excel

Capital asset pricing model (CAPM) indicates what should be the expected or required rate of return on risky assets like Take-Two Interactive Software Inc. common stock.


Rates of Return

Take-Two Interactive Software Inc., monthly rates of return

Microsoft Excel
Take-Two Interactive Software Inc. (TTWO) Standard & Poor’s 500 (S&P 500)
t Date PriceTTWO,t1 DividendTTWO,t1 RTTWO,t2 PriceS&P 500,t RS&P 500,t3
Apr 30, 2019 $96.83 2,945.83
1. May 31, 2019 $108.15 11.69% 2,752.06 -6.58%
2. Jun 30, 2019 $113.53 4.97% 2,941.76 6.89%
3. Jul 31, 2019 $122.52 7.92% 2,980.38 1.31%
. . . . . . .
. . . . . . .
. . . . . . .
70. Feb 28, 2025 $211.98 14.27% 5,954.50 -1.42%
71. Mar 31, 2025 $207.25 -2.23% 5,611.85 -5.75%
Average (R): 1.42% 1.04%
Standard deviation: 8.37% 5.05%
Take-Two Interactive Software Inc. (TTWO) Standard & Poor’s 500 (S&P 500)
t Date PriceTTWO,t1 DividendTTWO,t1 RTTWO,t2 PriceS&P 500,t RS&P 500,t3
Apr 30, 2019 $96.83 2,945.83
1. May 31, 2019 $108.15 11.69% 2,752.06 -6.58%
2. Jun 30, 2019 $113.53 4.97% 2,941.76 6.89%
3. Jul 31, 2019 $122.52 7.92% 2,980.38 1.31%
4. Aug 31, 2019 $131.97 7.71% 2,926.46 -1.81%
5. Sep 30, 2019 $125.34 -5.02% 2,976.74 1.72%
6. Oct 31, 2019 $120.35 -3.98% 3,037.56 2.04%
7. Nov 30, 2019 $121.35 0.83% 3,140.98 3.40%
8. Dec 31, 2019 $122.43 0.89% 3,230.78 2.86%
9. Jan 31, 2020 $124.64 1.81% 3,225.52 -0.16%
10. Feb 29, 2020 $107.48 -13.77% 2,954.22 -8.41%
11. Mar 31, 2020 $118.61 10.36% 2,584.59 -12.51%
12. Apr 30, 2020 $121.05 2.06% 2,912.43 12.68%
13. May 31, 2020 $136.17 12.49% 3,044.31 4.53%
14. Jun 30, 2020 $139.57 2.50% 3,100.29 1.84%
15. Jul 31, 2020 $164.02 17.52% 3,271.12 5.51%
16. Aug 31, 2020 $171.19 4.37% 3,500.31 7.01%
17. Sep 30, 2020 $165.22 -3.49% 3,363.00 -3.92%
18. Oct 31, 2020 $154.92 -6.23% 3,269.96 -2.77%
19. Nov 30, 2020 $180.51 16.52% 3,621.63 10.75%
20. Dec 31, 2020 $207.79 15.11% 3,756.07 3.71%
21. Jan 31, 2021 $200.45 -3.53% 3,714.24 -1.11%
22. Feb 28, 2021 $184.46 -7.98% 3,811.15 2.61%
23. Mar 31, 2021 $176.70 -4.21% 3,972.89 4.24%
24. Apr 30, 2021 $175.38 -0.75% 4,181.17 5.24%
25. May 31, 2021 $185.56 5.80% 4,204.11 0.55%
26. Jun 30, 2021 $177.02 -4.60% 4,297.50 2.22%
27. Jul 31, 2021 $173.42 -2.03% 4,395.26 2.27%
28. Aug 31, 2021 $161.22 -7.03% 4,522.68 2.90%
29. Sep 30, 2021 $154.07 -4.43% 4,307.54 -4.76%
30. Oct 31, 2021 $181.00 17.48% 4,605.38 6.91%
31. Nov 30, 2021 $165.88 -8.35% 4,567.00 -0.83%
32. Dec 31, 2021 $177.72 7.14% 4,766.18 4.36%
33. Jan 31, 2022 $163.34 -8.09% 4,515.55 -5.26%
34. Feb 28, 2022 $162.00 -0.82% 4,373.94 -3.14%
35. Mar 31, 2022 $153.74 -5.10% 4,530.41 3.58%
36. Apr 30, 2022 $119.51 -22.26% 4,131.93 -8.80%
37. May 31, 2022 $124.53 4.20% 4,132.15 0.01%
38. Jun 30, 2022 $122.53 -1.61% 3,785.38 -8.39%
39. Jul 31, 2022 $132.73 8.32% 4,130.29 9.11%
40. Aug 31, 2022 $122.56 -7.66% 3,955.00 -4.24%
41. Sep 30, 2022 $109.00 -11.06% 3,585.62 -9.34%
42. Oct 31, 2022 $118.48 8.70% 3,871.98 7.99%
43. Nov 30, 2022 $105.69 -10.80% 4,080.11 5.38%
44. Dec 31, 2022 $104.13 -1.48% 3,839.50 -5.90%
45. Jan 31, 2023 $113.23 8.74% 4,076.60 6.18%
46. Feb 28, 2023 $109.55 -3.25% 3,970.15 -2.61%
47. Mar 31, 2023 $119.30 8.90% 4,109.31 3.51%
48. Apr 30, 2023 $124.29 4.18% 4,169.48 1.46%
49. May 31, 2023 $137.73 10.81% 4,179.83 0.25%
50. Jun 30, 2023 $147.16 6.85% 4,376.86 4.71%
51. Jul 31, 2023 $152.94 3.93% 4,588.96 4.85%
52. Aug 31, 2023 $142.20 -7.02% 4,507.66 -1.77%
53. Sep 30, 2023 $140.39 -1.27% 4,288.05 -4.87%
54. Oct 31, 2023 $133.75 -4.73% 4,193.80 -2.20%
55. Nov 30, 2023 $158.20 18.28% 4,567.80 8.92%
56. Dec 31, 2023 $160.95 1.74% 4,769.83 4.42%
57. Jan 31, 2024 $164.93 2.47% 4,845.65 1.59%
58. Feb 29, 2024 $146.93 -10.91% 5,096.27 5.17%
59. Mar 31, 2024 $148.49 1.06% 5,254.35 3.10%
60. Apr 30, 2024 $142.81 -3.83% 5,035.69 -4.16%
61. May 31, 2024 $160.36 12.29% 5,277.51 4.80%
62. Jun 30, 2024 $155.49 -3.04% 5,460.48 3.47%
63. Jul 31, 2024 $150.53 -3.19% 5,522.30 1.13%
64. Aug 31, 2024 $161.71 7.43% 5,648.40 2.28%
65. Sep 30, 2024 $153.71 -4.95% 5,762.48 2.02%
66. Oct 31, 2024 $161.72 5.21% 5,705.45 -0.99%
67. Nov 30, 2024 $188.38 16.49% 6,032.38 5.73%
68. Dec 31, 2024 $184.08 -2.28% 5,881.63 -2.50%
69. Jan 31, 2025 $185.51 0.78% 6,040.53 2.70%
70. Feb 28, 2025 $211.98 14.27% 5,954.50 -1.42%
71. Mar 31, 2025 $207.25 -2.23% 5,611.85 -5.75%
Average (R): 1.42% 1.04%
Standard deviation: 8.37% 5.05%

Show all

1 Data in US$ per share of common stock, adjusted for splits and stock dividends.

2 Rate of return on common stock of TTWO during period t

3 Rate of return on S&P 500 (the market portfolio proxy) during period t


Variance and Covariance

Take-Two Interactive Software Inc., calculation of variance and covariance of returns

Microsoft Excel
t Date RTTWO,t RS&P 500,t (RTTWO,tRTTWO)2 (RS&P 500,tRS&P 500)2 (RTTWO,tRTTWO)×(RS&P 500,tRS&P 500)
1. May 31, 2019 11.69% -6.58% 105.49 58.00 -78.22
2. Jun 30, 2019 4.97% 6.89% 12.64 34.28 20.81
3. Jul 31, 2019 7.92% 1.31% 42.23 0.08 1.78
. . . . . . .
. . . . . . .
. . . . . . .
70. Feb 28, 2025 14.27% -1.42% 165.09 6.06 -31.64
71. Mar 31, 2025 -2.23% -5.75% 13.33 46.14 24.80
Total (Σ): 4,907.20 1,786.78 1,341.85
t Date RTTWO,t RS&P 500,t (RTTWO,tRTTWO)2 (RS&P 500,tRS&P 500)2 (RTTWO,tRTTWO)×(RS&P 500,tRS&P 500)
1. May 31, 2019 11.69% -6.58% 105.49 58.00 -78.22
2. Jun 30, 2019 4.97% 6.89% 12.64 34.28 20.81
3. Jul 31, 2019 7.92% 1.31% 42.23 0.08 1.78
4. Aug 31, 2019 7.71% -1.81% 39.60 8.11 -17.92
5. Sep 30, 2019 -5.02% 1.72% 41.52 0.46 -4.38
6. Oct 31, 2019 -3.98% 2.04% 29.17 1.01 -5.43
7. Nov 30, 2019 0.83% 3.40% 0.35 5.60 -1.39
8. Dec 31, 2019 0.89% 2.86% 0.28 3.31 -0.96
9. Jan 31, 2020 1.81% -0.16% 0.15 1.44 -0.46
10. Feb 29, 2020 -13.77% -8.41% 230.66 89.29 143.51
11. Mar 31, 2020 10.36% -12.51% 79.84 183.61 -121.08
12. Apr 30, 2020 2.06% 12.68% 0.41 135.63 7.42
13. May 31, 2020 12.49% 4.53% 122.56 12.18 38.64
14. Jun 30, 2020 2.50% 1.84% 1.16 0.64 0.86
15. Jul 31, 2020 17.52% 5.51% 259.15 20.00 71.99
16. Aug 31, 2020 4.37% 7.01% 8.71 35.62 17.62
17. Sep 30, 2020 -3.49% -3.92% 24.08 24.61 24.35
18. Oct 31, 2020 -6.23% -2.77% 58.58 14.48 29.12
19. Nov 30, 2020 16.52% 10.75% 227.96 94.41 146.70
20. Dec 31, 2020 15.11% 3.71% 187.49 7.15 36.61
21. Jan 31, 2021 -3.53% -1.11% 24.53 4.63 10.66
22. Feb 28, 2021 -7.98% 2.61% 88.30 2.47 -14.76
23. Mar 31, 2021 -4.21% 4.24% 31.66 10.28 -18.04
24. Apr 30, 2021 -0.75% 5.24% 4.70 17.68 -9.11
25. May 31, 2021 5.80% 0.55% 19.23 0.24 -2.15
26. Jun 30, 2021 -4.60% 2.22% 36.27 1.40 -7.12
27. Jul 31, 2021 -2.03% 2.27% 11.93 1.53 -4.27
28. Aug 31, 2021 -7.03% 2.90% 71.48 3.46 -15.73
29. Sep 30, 2021 -4.43% -4.76% 34.28 33.58 33.93
30. Oct 31, 2021 17.48% 6.91% 257.90 34.53 94.37
31. Nov 30, 2021 -8.35% -0.83% 95.52 3.50 18.29
32. Dec 31, 2021 7.14% 4.36% 32.69 11.04 19.00
33. Jan 31, 2022 -8.09% -5.26% 90.46 39.65 59.89
34. Feb 28, 2022 -0.82% -3.14% 5.02 17.43 9.35
35. Mar 31, 2022 -5.10% 3.58% 42.49 6.45 -16.55
36. Apr 30, 2022 -22.26% -8.80% 560.97 96.71 232.91
37. May 31, 2022 4.20% 0.01% 7.73 1.07 -2.87
38. Jun 30, 2022 -1.61% -8.39% 9.16 88.93 28.54
39. Jul 31, 2022 8.32% 9.11% 47.67 65.18 55.74
40. Aug 31, 2022 -7.66% -4.24% 82.48 27.90 47.97
41. Sep 30, 2022 -11.06% -9.34% 155.85 107.70 129.56
42. Oct 31, 2022 8.70% 7.99% 52.96 48.28 50.56
43. Nov 30, 2022 -10.80% 5.38% 149.20 18.81 -52.98
44. Dec 31, 2022 -1.48% -5.90% 8.39 48.10 20.08
45. Jan 31, 2023 8.74% 6.18% 53.57 26.39 37.60
46. Feb 28, 2023 -3.25% -2.61% 21.81 13.32 17.04
47. Mar 31, 2023 8.90% 3.51% 55.95 6.09 18.45
48. Apr 30, 2023 4.18% 1.46% 7.63 0.18 1.18
49. May 31, 2023 10.81% 0.25% 88.24 0.62 -7.42
50. Jun 30, 2023 6.85% 4.71% 29.45 13.51 19.95
51. Jul 31, 2023 3.93% 4.85% 6.29 14.50 9.55
52. Aug 31, 2023 -7.02% -1.77% 71.27 7.90 23.72
53. Sep 30, 2023 -1.27% -4.87% 7.25 34.93 15.91
54. Oct 31, 2023 -4.73% -2.20% 37.82 10.47 19.90
55. Nov 30, 2023 18.28% 8.92% 284.28 62.09 132.85
56. Dec 31, 2023 1.74% 4.42% 0.10 11.46 1.08
57. Jan 31, 2024 2.47% 1.59% 1.11 0.30 0.58
58. Feb 29, 2024 -10.91% 5.17% 152.12 17.09 -50.98
59. Mar 31, 2024 1.06% 3.10% 0.13 4.26 -0.74
60. Apr 30, 2024 -3.83% -4.16% 27.51 27.04 27.27
61. May 31, 2024 12.29% 4.80% 118.14 14.17 40.91
62. Jun 30, 2024 -3.04% 3.47% 19.86 5.90 -10.82
63. Jul 31, 2024 -3.19% 1.13% 21.25 0.01 -0.43
64. Aug 31, 2024 7.43% 2.28% 36.09 1.55 7.48
65. Sep 30, 2024 -4.95% 2.02% 40.54 0.96 -6.25
66. Oct 31, 2024 5.21% -0.99% 14.37 4.11 -7.69
67. Nov 30, 2024 16.49% 5.73% 226.97 22.01 70.68
68. Dec 31, 2024 -2.28% -2.50% 13.71 12.51 13.10
69. Jan 31, 2025 0.78% 2.70% 0.41 2.77 -1.07
70. Feb 28, 2025 14.27% -1.42% 165.09 6.06 -31.64
71. Mar 31, 2025 -2.23% -5.75% 13.33 46.14 24.80
Total (Σ): 4,907.20 1,786.78 1,341.85

Show all

VarianceTTWO = Σ(RTTWO,tRTTWO)2 ÷ (71 – 1)
= 4,907.20 ÷ (71 – 1)
= 70.10

VarianceS&P 500 = Σ(RS&P 500,tRS&P 500)2 ÷ (71 – 1)
= 1,786.78 ÷ (71 – 1)
= 25.53

CovarianceTTWO, S&P 500 = Σ(RTTWO,tRTTWO)×(RS&P 500,tRS&P 500) ÷ (71 – 1)
= 1,341.85 ÷ (71 – 1)
= 19.17


Systematic Risk (β) Estimation

Microsoft Excel
VarianceTTWO 70.10
VarianceS&P 500 25.53
CovarianceTTWO, S&P 500 19.17
Correlation coefficientTTWO, S&P 5001 0.45
βTTWO2 0.75
αTTWO3 0.64%

Calculations

1 Correlation coefficientTTWO, S&P 500
= CovarianceTTWO, S&P 500 ÷ (Standard deviationTTWO × Standard deviationS&P 500)
= 19.17 ÷ (8.37% × 5.05%)
= 0.45

2 βTTWO
= CovarianceTTWO, S&P 500 ÷ VarianceS&P 500
= 19.17 ÷ 25.53
= 0.75

3 αTTWO
= AverageTTWO – βTTWO × AverageS&P 500
= 1.42%0.75 × 1.04%
= 0.64%


Expected Rate of Return

Microsoft Excel
Assumptions
Rate of return on LT Treasury Composite1 RF 4.83%
Expected rate of return on market portfolio2 E(RM) 14.65%
Systematic risk (β) of Take-Two Interactive Software Inc. common stock βTTWO 0.75
 
Expected rate of return on Take-Two Interactive Software Inc. common stock3 E(RTTWO) 12.20%

1 Unweighted average of bid yields on all outstanding fixed-coupon U.S. Treasury bonds neither due or callable in less than 10 years (risk-free rate of return proxy).

2 See details »

3 E(RTTWO) = RF + βTTWO [E(RM) – RF]
= 4.83% + 0.75 [14.65%4.83%]
= 12.20%