A Business at a Glance
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Trade Desk, Inc.
TTD
$8.5B
Mkt Cap
$17.29
+2.98%
Trade Desk, Inc. (TTD) has a current P/E ratio of 19.2, compared to its historical median P/E of 42.6. The stock is currently considered Cheap based on its historical valuation range.
Trade Desk, Inc. (TTD) has a 5-year average return on invested capital (ROIC) of 21.2%. This indicates strong capital allocation and a potential competitive advantage.
Trade Desk, Inc. (TTD) has a market capitalization of $8.2B. It is classified as a mid-cap stock.
Trade Desk, Inc. (TTD) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 14.04%.
Based on historical P/E analysis, Trade Desk, Inc. (TTD) appears cheap. The current P/E of 19.2 is 55% below its historical median of 42.6. The estimated fair value CAGR (P/E method) is 13.8%.
Trade Desk, Inc. (TTD) operates in the Services-Computer Programming, Data Processing, Etc. industry, within the Technology sector.
Trade Desk, Inc. (TTD) reported annual revenue of $2.9 billion in its most recent fiscal year, based on SEC EDGAR filings.
The Trade Desk is a global leader in advertising technology that empowers ad buyers—including advertising agencies, advertisers, and service providers—to create, manage and optimize digital advertising campaigns across ad formats, channels and devices through a self-service platform and enterprise APIs. The company generates revenue primarily through platform fees charged as a percentage of clients' total platform spend, supplemented by value-added services and data offerings, with clients entering into ongoing master services agreements rather than episodic transactions. The platform's core strengths include AI-powered capabilities (particularly Koa, its AI co-pilot), a bid-factor-based architecture enabling high expressiveness and precision targeting, integrated omnichannel inventory access, and advanced reporting and measurement tools; the company maintains independence by focusing exclusively on the buy side, avoiding conflicts of interest inherent in competitors serving both buyers and sellers. The Trade Desk operates a highly scalable, asset-light model with a customer retention rate exceeding 95% for over a decade, serving a global client base across premium open internet inventory including connected television, display, video, and increasingly retail media and sponsored listings. The company's competitive moat derives from its data-driven platform architecture, proprietary AI innovations, rich ecosystem of publisher and data partner integrations, and the trust clients place in sharing their proprietary first-party data on an independent, objective platform.
【AI-driven innovation and retail expansion】 Management expects continued investment in AI capabilities and platform innovation to drive long-term returns, with Audience Unlimited and enhanced Koa features enabling greater automation and decisioning across campaigns. The company anticipates accelerating adoption of connected television as the default buying model, with biddable CTV becoming increasingly prevalent as advertisers prioritize flexibility and data-driven targeting over traditional guaranteed deals. Retail media represents a significant growth opportunity, with joint business plans under negotiation and spend within those partnerships growing faster than overall platform spend; the company has begun integrating with retailers like Dollar General and Kevel to enable programmatic access to sponsored listings. Management remains focused on maintaining operating discipline with headcount growth below revenue growth while prioritizing investments in infrastructure, AI innovation, retail media, and measurement capabilities to support profitable growth.
| Metric | Target | Period |
|---|---|---|
| Adjusted EBITDA margin percentage | at least 40% | Full year 2026 |
Adjusted EBITDA margin percentage (Full year 2026): “we continue to expect our full year 2026 adjusted EBITDA margin percentage to be at least 40%, approximately in line with 2025.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 3.0B | 2.9B | 2.4B | 1.9B | 1.6B | 1.2B |
| Net Income | 433M | 443M | 393M | 179M | 53M | 138M |
| EPS | $0.88 | $0.90 | $0.78 | $0.36 | $0.11 | $0.28 |
| Free Cash Flow | 842M | 796M | 641M | 552M | 465M | 324M |
| ROIC | 37.5% | 30.0% | 31.2% | 15.9% | 9.1% | 20.1% |
| Gross Margin | - | 78.6% | 62.0% | 62.4% | 64.5% | 64.3% |
| Debt/Equity | 0.00 | 0.18 | 0.11 | 0.11 | 0.12 | 0.19 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 602M | 589M | 427M | 200M | 114M | 125M |
| Operating Margin | 20.3% | 20.3% | 17.5% | 10.3% | 7.2% | 10.4% |
| ROE | 17.6% | 16.3% | 15.4% | 8.4% | 2.9% | 10.8% |
| Shares Outstanding | 477M | 493M | 504M | 497M | 485M | 492M |
Trade Desk, Inc. passes 8 of 9 quality checks, indicating strong fundamentals.
Trade Desk, Inc. trades at 19.2x trailing earnings, compared to its 15-year median P/E of 42.6x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 9.4x vs a median of 23.7x. The company's 5-year average ROIC is 21.2% with a gross margin of 66.3%. Total shareholder yield (buybacks) is 14.0%. At current prices, the estimated annualized return to fair value is +45.1%.
Trade Desk, Inc. (TTD) has a net profit margin of 15.3%. This is a healthy margin.
Trade Desk, Inc. (TTD) generated $796 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Trade Desk, Inc. (TTD) has a debt-to-equity ratio of 0.18. This indicates a conservatively financed balance sheet.
Trade Desk, Inc. (TTD) reported earnings per share (EPS) of $0.90 in its most recent fiscal year.
Trade Desk, Inc. (TTD) has a return on equity (ROE) of 16.3%. This indicates the company generates strong returns for shareholders.
Trade Desk, Inc. (TTD) has a 5-year average gross margin of 66.3%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 12 years of financial data for Trade Desk, Inc. (TTD), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Trade Desk, Inc. (TTD) has a book value per share of $5.04, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued investment in AI capabilities and platform innovation to drive long-term returns, with Audience Unlimited and enhanced Koa features enabling greater automation and decisioning across campaigns. The company anticipates accelerating adoption of connected television as the default buying model, with biddable CTV becoming increasingly prevalent as advertisers prioritize flexibility and data-driven targeting over traditional guaranteed deals. Retail media represents a significant growth opportunity, with joint business plans under negotiation and spend within those partnerships growing faster than overall platform spend; the company has begun integrating with retailers like Dollar General and Kevel to enable programmatic access to sponsored listings. Management remains focused on maintaining operating discipline with headcount growth below revenue growth while prioritizing investments in infrastructure, AI innovation, retail media, and measurement capabilities to support profitable growth.
Based on recent SEC filings and earnings calls, Trade Desk, Inc. (TTD) has provided the following forward guidance: Adjusted EBITDA margin percentage: at least 40% (Full year 2026).