The Trade Desk, Inc. (TTD) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+179.9%

$35.75

vs $12.77 price

Levered DCF

$39.96

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

2.25

Grey zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	41.26×	146.91×	194.49×	407.55×	316×	154.04×	108.25×	61.11×
P/B	7.33×	19.56×	16.27×	10.32×	28.61×	36.59×	18.89×	13.47×
P/S	6.29×	23.6×	18.09×	13.84×	36.52×	44.35×	17.5×	11.14×
EV / EBITDA	23.24×	95.22×	99.16×	115.84×	261.54×	213.67×	86.87×	42.88×
Gross margin	78.6%	80.7%	81.2%	82.2%	81.5%	78.6%	76.4%	76.1%
Operating margin	20.3%	17.5%	10.3%	7.2%	10.4%	17.2%	17.0%	22.5%
Net margin	15.3%	16.1%	9.2%	3.4%	11.5%	29.0%	16.4%	18.5%
Current ratio	1.61×	1.86×	1.72×	1.9×	1.71×	1.57×	1.56×	1.48×
Debt / equity	0.18×	0.11×	0.11×	0.12×	0.19×	0.29×	0.31×	0×
Interest coverage	0×	0×	0×	0×	121.18×	0×	0×	0×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	17.8%	13.3%	8.3%	2.5%	9.0%	23.9%	17.7%	22.3%
Return on invested capital	13.4%	10.0%	5.5%	2.0%	6.9%	11.0%	12.9%	22.2%
Return on assets	7.2%	6.4%	3.7%	1.2%	3.9%	8.8%	6.3%	7.9%
Free cash flow yield	4.4%	1.1%	1.5%	2.1%	0.7%	0.9%	0.2%	1.2%
Earnings yield	2.4%	0.7%	0.5%	0.2%	0.3%	0.7%	0.9%	1.7%
Enterprise value	$18B	$56.6B	$34.5B	$21.1B	$43.2B	$36.9B	$11.6B	$5.1B
Net debt / EBITDA	-0.29×	-1.78×	-1.89×	-4.23×	-2.84×	-0.84×	0.44×	-1.74×
Cash conversion cycle (days)	-1,276	-1,537	-1,775	-1,887	-2,111	-2,061	-1,386	-1,502