Enterprise Value to FCFF (EV/FCFF)
Free Cash Flow to The Firm (FCFF)
Take-Two Interactive Software Inc., FCFF calculation
US$ in thousands
Based on: 10-K (reporting date: 2025-03-31), 10-K (reporting date: 2024-03-31), 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31).
- Net cash provided by (used in) operating activities
- The net cash from operating activities showed a significant increase from 685,678 thousand USD in 2020 to a peak of 912,318 thousand USD in 2021. This was followed by a sharp decline to 257,984 thousand USD in 2022. The downward trend continued drastically in 2023, dropping to 1,100 thousand USD, and further into negative values in 2024 and 2025, recording -16,100 thousand USD and -45,200 thousand USD respectively. This reflects a severe contraction in operational cash generation over the recent years.
- Free cash flow to the firm (FCFF)
- Free cash flow to the firm (FCFF) exhibited a similar trend. Beginning at 636,484 thousand USD in 2020, it rose to 845,013 thousand USD in 2021. Subsequently, FCFF dramatically decreased to 99,342 thousand USD in 2022, then turned negative in 2023 at -136,661 thousand USD. Although there was a slight recovery in 2024 to -49,570 thousand USD, it remained negative and worsened somewhat in 2025, reaching -67,941 thousand USD. The pattern indicates growing challenges in generating free cash flow, impacting financial flexibility and potentially signaling increased investment or operational difficulties.
Interest Paid, Net of Tax
Take-Two Interactive Software Inc., interest paid, net of tax calculation
US$ in thousands
Based on: 10-K (reporting date: 2025-03-31), 10-K (reporting date: 2024-03-31), 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31).
2 2025 Calculation
Interest paid, tax = Interest paid × EITR
= 147,100 × 0.30% = 441
- Effective Income Tax Rate (EITR)
- The effective income tax rate exhibited variability over the observed periods. It started at 11.8% as of March 31, 2020, then increased slightly to 13.1% by the end of March 2021. Subsequently, there was a decline to 10.2% by March 31, 2022, indicating a temporary reduction in tax burden. However, the rate rose notably to 15.9% by March 31, 2023, before climbing further to 21% as of March 31, 2024. The latest figure shows a sharp decrease to 0.3% by March 31, 2025. This pattern implies significant fluctuations in tax expenses relative to taxable income throughout the years, with an especially substantial decrease in the most recent period.
- Interest Paid, Net of Tax
- Interest paid, net of tax, showed an irregular but overall increasing trend. Starting at US$4,190 thousand as of March 31, 2020, it decreased sharply to US$1,618 thousand by March 31, 2021. Data for March 31, 2022, is missing, thus limiting the trend analysis for that year. On resumption at March 31, 2023, interest paid increased substantially to US$66,439 thousand. This upward momentum continued with a rise to US$108,230 thousand as of March 31, 2024, and further to US$146,659 thousand by March 31, 2025. The significant escalation from 2023 onwards suggests increased borrowing costs or higher debt levels during the recent periods.
Enterprise Value to FCFF Ratio, Current
Take-Two Interactive Software Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 44,862,035) |
| Free cash flow to the firm (FCFF) | (67,941) |
| Valuation Ratio | |
| EV/FCFF | — |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Alphabet Inc. | 28.09 |
| Comcast Corp. | 14.48 |
| Meta Platforms Inc. | 32.27 |
| Netflix Inc. | 73.10 |
| Walt Disney Co. | 25.17 |
| EV/FCFF, Sector | |
| Media & Entertainment | 30.35 |
| EV/FCFF, Industry | |
| Communication Services | 26.69 |
Based on: 10-K (reporting date: 2025-03-31).
1 Click competitor name to see calculations.
If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.
Enterprise Value to FCFF Ratio, Historical
Take-Two Interactive Software Inc., historical EV/FCFF calculation, comparison to benchmarks
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Enterprise value (EV)1 | 44,319,116) | 27,867,153) | 25,291,781) | 11,341,810) | 17,472,522) | 13,461,826) | |
| Free cash flow to the firm (FCFF)2 | (67,941) | (49,570) | (136,661) | 99,342) | 845,013) | 636,484) | |
| Valuation Ratio | |||||||
| EV/FCFF3 | — | — | — | 114.17 | 20.68 | 21.15 | |
| Benchmarks | |||||||
| EV/FCFF, Competitors4 | |||||||
| Alphabet Inc. | — | 31.26 | 24.03 | 20.87 | 27.17 | 29.53 | |
| Comcast Corp. | — | 14.02 | 17.60 | 17.93 | 15.77 | 20.50 | |
| Meta Platforms Inc. | — | 30.96 | 26.42 | 24.09 | 15.40 | 29.48 | |
| Netflix Inc. | — | 56.17 | 33.81 | 77.11 | 335.37 | 95.41 | |
| Walt Disney Co. | — | 23.13 | 31.55 | 90.23 | 78.66 | 63.77 | |
| EV/FCFF, Sector | |||||||
| Media & Entertainment | — | 30.26 | 25.02 | 23.83 | 24.76 | 31.49 | |
| EV/FCFF, Industry | |||||||
| Communication Services | — | 26.47 | 22.52 | 23.48 | 31.43 | 25.70 | |
Based on: 10-K (reporting date: 2025-03-31), 10-K (reporting date: 2024-03-31), 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31).
3 2025 Calculation
EV/FCFF = EV ÷ FCFF
= 44,319,116 ÷ -67,941 = —
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value demonstrates a fluctuating yet overall increasing trend across the periods. Starting at approximately $13.46 billion in March 2020, it rose to about $17.47 billion in March 2021. This was followed by a notable decline to roughly $11.34 billion in March 2022. Subsequently, a significant increase occurred, reaching approximately $25.29 billion in March 2023 and further climbing to around $27.87 billion in March 2024. The latest data point in March 2025 shows a substantial increase to about $44.32 billion, indicating aggressive valuation growth in the most recent period.
- Free Cash Flow to the Firm (FCFF)
- Free cash flow to the firm experienced considerable variability over time, reflecting challenges in maintaining positive operational cash generation. Beginning with a strong positive cash flow of $636.48 million in March 2020, the figure improved to $845.01 million in March 2021. However, a sharp decline occurred in March 2022, with FCFF dropping to $99.34 million. The subsequent two years, March 2023 and March 2024, recorded negative free cash flow values of -$136.66 million and -$49.57 million respectively, highlighting potential operational or investment pressures. The downward trend persisted into March 2025, with FCFF further declining to -$67.94 million.
- EV to FCFF Ratio
- The valuation multiple represented by the EV/FCFF ratio is characterized by a mostly stable range initially, followed by a sharp increase and incomplete data in later periods. In March 2020 and 2021, the ratio was within a comparable range at approximately 21.15 and 20.68 times, implying consistent valuation relative to cash flow. By March 2022, a dramatic surge to 114.17 times was observed, likely driven by the significant reduction in FCFF. No ratio data is available for the more recent periods, complicating further analysis. This ratio spike indicates elevated valuation levels relative to free cash flow during the downturn in cash generation, reflecting potential market expectations or distortions.
- Summary
- Overall, the data reveals a company experiencing substantial enterprise value growth in the later periods despite weakening free cash flow performance. The decline and eventual negative values in FCFF suggest operational or capital expenditure challenges affecting liquidity or profitability. The extreme rise in the EV/FCFF ratio in 2022 points to an elevated valuation that is not supported by underlying cash flow generation during that period. The absence of subsequent ratio data precludes a definitive conclusion about the alignment of valuation and cash flow in the most recent years. The divergent trends indicate a need for careful monitoring of cash flow health relative to the high valuation levels.