TTD PE Ratio & Valuation,Is TTD Overvalued

TTD Relative Valuation

TTD's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, TTD is overvalued; if below, it's undervalued.

Historical Valuation

Trade Desk Inc (TTD) is now in the Undervalued zone, suggesting that its current forward PE ratio of 18.63 is considered Undervalued compared with the five-year average of 62.49. The fair price of Trade Desk Inc (TTD) is between 80.75 to 163.80 according to relative valuation methord. Compared to the current price of 36.65 USD , Trade Desk Inc is Undervalued By 54.61%.

Relative Value

Fair Zone

80.75-163.80

Current Price：36.65

54.61%

Undervalued

18.63

13.09

EV/EBITDA

Trade Desk Inc. (TTD) has a current EV/EBITDA of 13.09. The 5-year average EV/EBITDA is 46.49. The thresholds are as follows: Strongly Undervalued below 8.22, Undervalued between 8.22 and 27.35, Fairly Valued between 65.62 and 27.35, Overvalued between 65.62 and 84.76, and Strongly Overvalued above 84.76. The current Forward EV/EBITDA of 13.09 falls within the Undervalued range.

26.87

EV/EBIT

Trade Desk Inc. (TTD) has a current EV/EBIT of 26.87. The 5-year average EV/EBIT is 134.28. The thresholds are as follows: Strongly Undervalued below -2.04, Undervalued between -2.04 and 66.12, Fairly Valued between 202.44 and 66.12, Overvalued between 202.44 and 270.60, and Strongly Overvalued above 270.60. The current Forward EV/EBIT of 26.87 falls within the Undervalued range.

5.55

Trade Desk Inc. (TTD) has a current PS of 5.55. The 5-year average PS is 18.53. The thresholds are as follows: Strongly Undervalued below 4.64, Undervalued between 4.64 and 11.59, Fairly Valued between 25.48 and 11.59, Overvalued between 25.48 and 32.43, and Strongly Overvalued above 32.43. The current Forward PS of 5.55 falls within the Undervalued range.

16.68

P/OCF

Trade Desk Inc. (TTD) has a current P/OCF of 16.68. The 5-year average P/OCF is 55.19. The thresholds are as follows: Strongly Undervalued below 11.50, Undervalued between 11.50 and 33.35, Fairly Valued between 77.03 and 33.35, Overvalued between 77.03 and 98.87, and Strongly Overvalued above 98.87. The current Forward P/OCF of 16.68 falls within the Undervalued range.

19.66

P/FCF

Trade Desk Inc. (TTD) has a current P/FCF of 19.66. The 5-year average P/FCF is 62.53. The thresholds are as follows: Strongly Undervalued below 4.38, Undervalued between 4.38 and 33.45, Fairly Valued between 91.60 and 33.45, Overvalued between 91.60 and 120.67, and Strongly Overvalued above 120.67. The current Forward P/FCF of 19.66 falls within the Undervalued range.

Trade Desk Inc (TTD) has a current Price-to-Book (P/B) ratio of 6.83. Compared to its 3-year average P/B ratio of 16.31 , the current P/B ratio is approximately -58.10% higher. Relative to its 5-year average P/B ratio of 19.89, the current P/B ratio is about -65.65% higher. Trade Desk Inc (TTD) has a Forward Free Cash Flow (FCF) yield of approximately 3.89%. Compared to its 3-year average FCF yield of 1.69%, the current FCF yield is approximately 130.41% lower. Relative to its 5-year average FCF yield of 1.49% , the current FCF yield is about 160.58% lower.

6.83

P/B

Median3y

16.31

Median5y

19.89

3.89

FCF Yield

Median3y

1.69

Median5y

1.49

Competitors Valuation Multiple

The average P/S ratio for TTD's competitors is 6.13, providing a benchmark for relative valuation. Trade Desk Inc Corp (TTD) exhibits a P/S ratio of 5.55, which is -9.47% above the industry average. Given its robust revenue growth of 17.74%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of TTD decreased by 68.82% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 628.02M to 739.43M.

The secondary factor is the Margin Expansion, contributed 4.27%to the performance.

Overall, the performance of TTD in the past 1 year is driven by Revenue Growth. Which is more sustainable.

17.74%

628.02M → 739.43M

Revenue Growth

4.27%

14.99 → 15.63

Margin Expansion

-90.83%

454.15 → 41.65

P/E Change

-68.82%

117.53 → 36.65

Mkt Cap Growth

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Frequently Asked Questions

Is Trade Desk Inc (TTD) currently overvalued or undervalued?

What is Trade Desk Inc (TTD) fair value?

TTD's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Trade Desk Inc (TTD) is between 80.75 to 163.80 according to relative valuation methord.

How does TTD's valuation metrics compare to the industry average?

What is the current P/B ratio for Trade Desk Inc (TTD) as of Dec 15 2025?

As of Dec 15 2025, Trade Desk Inc (TTD) has a P/B ratio of 6.83. This indicates that the market values TTD at 6.83 times its book value.

What is the current FCF Yield for Trade Desk Inc (TTD) as of Dec 15 2025?

As of Dec 15 2025, Trade Desk Inc (TTD) has a FCF Yield of 3.89%. This means that for every dollar of Trade Desk Inc’s market capitalization, the company generates 3.89 cents in free cash flow.

What is the current Forward P/E ratio for Trade Desk Inc (TTD) as of Dec 15 2025?

As of Dec 15 2025, Trade Desk Inc (TTD) has a Forward P/E ratio of 18.63. This means the market is willing to pay $18.63 for every dollar of Trade Desk Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Trade Desk Inc (TTD) as of Dec 15 2025?

As of Dec 15 2025, Trade Desk Inc (TTD) has a Forward P/S ratio of 5.55. This means the market is valuing TTD at $5.55 for every dollar of expected revenue over the next 12 months.

TTD Valuation