Software - Application · NASDAQ
Current Price
$24.37
Intrinsic Value
Use the calculator below to estimate
Run a PE ratio stock valuation on The Trade Desk, Inc. with auto-filled earnings data, adjustable target PE, and instant fair value estimate.
Trade Desk, Inc. operates as a technology company in the United States and internationally. The company operates a self-service cloud-based platform that allows buyers to create, manage, and optimize data-driven digital advertising campaigns across various ad formats and channels, including display, video, audio, native, and social on various devices, such as computers, mobile devices, and connected TV. It also provides data and other value-added services. The company serves advertising agencies and other service providers for advertisers. The Trade Desk, Inc. was incorporated in 2009 and is headquartered in Ventura, California.
Earnings Yield
3.79%
ROE (TTM)
16.9%
Based on trailing twelve-month data, TTD has earnings per share of N/A and trades at a PE ratio of N/A. These are key inputs for stock valuation using the PE ratio method.
The trailing twelve-month PE ratio of TTD reflects how much investors pay per dollar of The Trade Desk, Inc.'s earnings. This metric is most useful when compared to Software - Application peers and the company's own historical range.
Whether TTD is overvalued depends on comparing its PE ratio to Software - Application peers, historical averages, and growth expectations. A PE above the sector average may indicate overvaluation, but high-growth companies often command premium multiples. Consider pairing PE analysis with a DCF model for a more complete picture.
To value The Trade Desk, Inc. using PE: (1) Compare the current PE against the Software - Application median to assess relative pricing, (2) check the PEG ratio to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
The PEG ratio divides the PE ratio by the expected earnings growth rate, providing a growth-adjusted valuation metric. A PEG below 1.0 may indicate undervaluation relative to growth, while above 2.0 may suggest overvaluation. PEG is most reliable for companies with stable, predictable earnings growth.
PE ratio gives a quick relative read — how TTD is priced versus Software - Application peers. DCF provides an absolute value based on projected free cash flows. For TTD, with a strong ROE of 16.9%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
