Is Take-Two Interactive Software, Inc. overvalued or undervalued?

As of 7 November 2022, the valuation grade for Take-Two Interactive Software, Inc. moved from expensive to risky, indicating a shift in perception regarding its financial health and market position. The company is currently considered overvalued. Key ratios include a Price to Book Value of 21.89, an EV to EBITDA of 65.53, and a ROE of -35.29%, which highlight significant financial challenges.
In comparison to its peers, Take-Two's P/E ratio is notably negative at -63.31, while Electronic Arts, Inc. has a P/E of 32.57, and Veeva Systems, Inc. stands at 59.01, illustrating the disparity in valuation among similar companies. Despite Take-Two's recent stock performance, which has outpaced the S&P 500 with a 52.69% return over the past year, the underlying financial metrics suggest that the stock is not justified at its current price level.