How "Grand Theft Auto V" Proves Take-Two Stock Is Cheap

By Tim Beyers – Oct 3, 2013 at 7:20PM

NASDAQ: TTWO

Take-Two Interactive Software

Market Cap

$24B

Today's Change

(1.70%) $2.38

Current Price

$142.34

Price as of April 23, 2024, 1:34 p.m. ET

Online enhancements create untold flexibility.

Take-Two Interactive (TTWO 1.70%) should be worth at least $2 billion in market value, Fool contributor Tim Beyers says in the following video.

Why? Grand Theft Auto V is much more than a single-player game. An accompanying online world promises expansive, multiplayer experiences to those who buy the game. Players have already started logging in, putting pressure on Take-Two's servers. Over time, the revenue from GTA V online could double the game's $1 billion sales haul, Tim says.

In the meantime, Take-Two stock trades for just $1.7 billion in market cap. Tim says that's lowballing the potential of the company's signature franchise. Do you agree? Disagree? Please watch the video to get Tim's full take and then leave a comment to let us know where you stand.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He didn't own shares in any of the companies mentioned at the time of publication. Check out Tim's web home and portfolio holdings or connect with him on Google+, Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

The Motley Fool recommends Take-Two Interactive . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.