The Trade Desk, Inc. (TTD) Intrinsic Value & DCF Valuation
Advertising Agencies · NASDAQ
Current Price
$19.28
Intrinsic Value
Outside reliable range
What Is The Trade Desk, Inc.'s Intrinsic Value?
Our base-case DCF model produces an intrinsic value estimate for The Trade Desk, Inc. (TTD) that falls outside the range we consider reliable, so treat any single number with extra caution. This usually happens with unusual cash flow patterns or rapid recent changes in the business.
How our DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is The Trade Desk, Inc. (TTD) Undervalued?
Because the model output for TTD is outside our reliability range, we do not give an undervalued or overvalued read here. Use the calculator below to test your own assumptions instead.
COMPETITIVE MOAT
↑Unified Data Platform
TTD's unified platform integrates vast datasets, offering advertisers unparalleled audience insights and campaign optimization. This network effect makes it difficult for competitors to replicate.
↑CTV Leadership
The Trade Desk is a dominant player in Connected TV advertising, a rapidly growing and complex channel. Their early investment and expertise create a significant advantage.
↑Independent Neutrality
As an independent ad-tech platform, TTD avoids conflicts of interest inherent in walled gardens. This neutrality attracts advertisers seeking unbiased reach and transparency.
INVESTMENT RISKS
↓Ad-Tech Sector Volatility
The ad-tech sector is experiencing significant downturns, as evidenced by recent stock performance. This cyclical nature and investor sentiment pose a broad risk.
↓Regulatory Scrutiny
Increased scrutiny on data privacy and advertising practices could lead to new regulations impacting TTD's business model. Potential insider duty breaches also raise governance concerns.
↓Competition from Walled Gardens
Large tech companies with their own ad platforms (walled gardens) continue to exert significant market power. They can leverage their ecosystems to compete directly.
Base case
TTD base case valuation
Base case assumptions: 17.9% annual growth, 10.0% discount rate, 11x exit multiple, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the TTD valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for The Trade Desk, Inc. respond.
Open DCF Calculator for TTDCompany Overview
The Trade Desk, Inc. is a global technology company that provides a self-service, cloud-based platform. This platform enables advertising buyers to efficiently create, manage, and optimize data-driven digital ad campaigns across diverse formats and channels, including display, video, audio, native, and social media, reaching audiences on computers, mobile devices, and connected TVs. In addition to the platform, the company offers various data and value-added services. Their primary clients are advertising agencies and other service providers who represent advertisers. The Trade Desk was founded in 2009 and is headquartered in Ventura, California.
Financial Metrics — TTD Stock Valuation Data
Revenue/Share (TTM)
$6.26
FCF/Share (TTM)
$1.76
ROIC (TTM)
13.5%
ROE (TTM)
16.9%
P/FCF
10.8x
EV/EBITDA
11.0x
FCF Yield
9.23%
Debt/Equity
0.17x
Based on trailing twelve-month data, TTD shows a free cash flow per share of $1.76 and a ROIC of 13.5%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 10.8x and FCF yield of 9.23% are important context metrics when evaluating TTD's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of TTD?
The Trade Desk, Inc. currently generates $1.76 in free cash flow per share. At the current price of $19.28, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is TTD undervalued?
TTD trades at a P/FCF ratio of 10.8x with a free cash flow yield of 9.23%. This relatively low P/FCF may suggest the stock is attractively priced relative to its cash generation. However, whether TTD is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value TTD stock using DCF?
To perform a DCF valuation on The Trade Desk, Inc.: (1) Start with the trailing free cash flow per share ($1.76) as the base, (2) project future FCF growth over 5-10 years based on Advertising Agencies industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting TTD's risk profile — with a debt-to-equity of 0.17x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to TTD?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For The Trade Desk, Inc., this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Advertising Agencies trends, then discounting those amounts to today's dollars. TTD's ROIC of 13.5% shows moderate capital returns.
How does WACC affect TTD stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For TTD, with a debt-to-equity ratio of 0.17x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 11.0x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See TTD PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Communication Services valuationsDCF and P/E value TTD with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.