TTWONEUTRAL

EV/EBITDA

56.7x

Updated 560h ago

Sector Performance

95th percentile

TTWO

56.7x

Sector Median

13.7x

Sector Avg

18.7x

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Deep Analysis

EV/EBITDA compares a company's total value (enterprise value) to its earnings before interest, taxes, depreciation, and amortization – a high multiple like 56.7x means investors are paying a premium for each dollar of these earnings.

This sits far above the sector median of 14.2x, placing TTWO in the 98th percentile among peers. The metric has been increasing over the last eight quarters, with a year-over-year jump of 534.1% and a quarter-over-quarter rise of 82.0%. Such an extreme level combined with rapid expansion suggests elevated valuation risk, as the stock price has outpaced underlying earnings growth. This high and rising EV/EBITDA contradicts the overall NEUTRAL verdict, indicating the stock is richly priced relative to its sector.

Frequently Asked Questions

What does the EV/EBITDA tell investors about TTWO?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

Who are TTWO's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: LSPD (-24.2x), BRZE (-24.5x), EVGO (-25.7x), NIO (-36.8x), SNAP (-38.8x).

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.