Latest Ratios: P/E Ratio 21.2x · EV/EBITDA 12.6x · ROE 16.3%. (2014–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $9.1B | $18.3B | $59.0B | $36.0B | $22.4B | $45.7B | $39.2B | $12.4B | $5.3B | $2.0B | $1.1B |
| Enterprise Value | $8.9B | $18.1B | $57.9B | $35.3B | $21.6B | $45.2B | $39.1B | $12.5B | $5.1B | $1.9B | $1.0B |
| P/E Ratio → | 21.22 | 41.71 | 150.68 | 199.89 | 407.55 | 327.29 | 163.47 | 112.96 | 61.11 | 38.08 | 54.96 |
| P/S Ratio | 3.13 | 6.33 | 24.13 | 18.49 | 14.20 | 38.18 | 46.94 | 18.79 | 11.14 | 6.53 | 5.55 |
| P/B Ratio | 3.75 | 7.38 | 20.00 | 16.63 | 10.59 | 29.91 | 38.73 | 20.28 | 13.47 | 8.20 | 6.85 |
| P/FCF | 11.41 | 23.03 | 93.28 | 66.25 | 49.06 | 143.42 | 120.75 | 633.64 | 86.57 | 110.87 | 17.10 |
| P/OCF | 9.14 | 18.46 | 79.78 | 60.16 | 40.84 | 120.70 | 96.87 | 206.30 | 61.39 | 64.48 | 15.00 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 6.25 | 23.70 | 18.16 | 13.72 | 37.79 | 46.76 | 18.88 | 10.70 | 6.11 | 5.02 |
| EV / EBITDA | 12.56 | 25.67 | 112.57 | 125.79 | 128.76 | 270.70 | 226.19 | 93.22 | 42.88 | 24.61 | 16.60 |
| EV / EBIT | 15.03 | 27.48 | 135.62 | 176.25 | 190.42 | 362.26 | 271.10 | 111.22 | 47.61 | 27.17 | 21.70 |
| EV / FCF | — | 22.75 | 91.61 | 65.04 | 47.37 | 141.95 | 120.31 | 636.63 | 83.20 | 103.77 | 15.47 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 78.6% | 78.6% | 80.7% | 81.2% | 82.2% | 81.5% | 78.6% | 76.4% | 76.1% | 78.5% | 80.3% |
| Operating Margin | 20.3% | 20.3% | 17.5% | 10.3% | 7.2% | 10.4% | 17.2% | 17.0% | 22.5% | 22.5% | 28.3% |
| Net Profit Margin | 15.3% | 15.3% | 16.1% | 9.2% | 3.4% | 11.5% | 29.0% | 16.4% | 18.5% | 16.5% | 10.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 16.3% | 16.3% | 15.4% | 8.4% | 2.9% | 10.8% | 29.8% | 21.5% | 27.5% | 24.8% | 20.2% |
| ROA | 7.2% | 7.2% | 7.1% | 3.9% | 1.3% | 4.4% | 10.8% | 7.6% | 9.2% | 7.6% | 5.5% |
| ROIC | 21.3% | 21.3% | 18.9% | 10.5% | 7.1% | 9.7% | 14.1% | 19.6% | 53.0% | 60.0% | 63.4% |
| ROCE | 19.2% | 19.2% | 15.2% | 8.5% | 5.5% | 8.2% | 13.9% | 18.7% | 31.4% | 29.4% | 40.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.18 | 0.18 | 0.11 | 0.11 | 0.12 | 0.19 | 0.29 | 0.31 | — | 0.11 | 0.16 |
| Debt / EBITDA | 0.62 | 0.62 | 0.61 | 0.84 | 1.55 | 1.70 | 1.69 | 1.42 | — | 0.35 | 0.42 |
| Net Debt / Equity | — | -0.09 | -0.36 | -0.30 | -0.36 | -0.31 | -0.14 | 0.10 | -0.53 | -0.53 | -0.65 |
| Net Debt / EBITDA | -0.31 | -0.31 | -2.05 | -2.35 | -4.58 | -2.81 | -0.84 | 0.44 | -1.74 | -1.68 | -1.75 |
| Debt / FCF | — | -0.28 | -1.67 | -1.21 | -1.68 | -1.47 | -0.45 | 2.99 | -3.37 | -7.10 | -1.63 |
| Interest Coverage | — | — | — | — | — | 121.18 | — | — | — | 38.72 | 15.25 |
Net cash position: cash ($658M) exceeds total debt ($436M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.61 | 1.61 | 1.86 | 1.72 | 1.90 | 1.71 | 1.57 | 1.56 | 1.48 | 1.48 | 1.50 |
| Quick Ratio | 1.61 | 1.61 | 1.86 | 1.72 | 1.90 | 1.71 | 1.57 | 1.56 | 1.48 | 1.48 | 1.50 |
| Cash Ratio | 0.40 | 0.40 | 0.67 | 0.55 | 0.71 | 0.53 | 0.42 | 0.27 | 0.29 | 0.30 | 0.39 |
| Asset Turnover | — | 0.47 | 0.40 | 0.40 | 0.36 | 0.33 | 0.30 | 0.38 | 0.43 | 0.39 | 0.38 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 497.19 | 497.20 | 538.33 | 542.99 | 616.45 | 691.60 | 644.01 | 638.37 | 710.02 | 678.54 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.7% | 2.4% | 0.7% | 0.5% | 0.2% | 0.3% | 0.6% | 0.9% | 1.6% | 2.6% | 1.8% |
| FCF Yield | 8.8% | 4.3% | 1.1% | 1.5% | 2.0% | 0.7% | 0.8% | 0.2% | 1.2% | 0.9% | 5.8% |
| Buyback Yield | 15.2% | 7.5% | 0.4% | 1.8% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 4.8% |
| Total Shareholder Yield | 15.2% | 7.5% | 0.4% | 1.8% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 4.8% |
| Shares Outstanding | — | $483M | $502M | $500M | $500M | $499M | $490M | $478M | $458M | $441M | $406M |
Regulatory and competitive disintermediation
Based on current market data, TTD trades at a P/E of 20.19, which, when viewed alongside a PEG ratio of 1.53, suggests that investors are pricing in a transition from hyper-growth to a more mature, albeit still expanding, phase of the programmatic advertising cycle.
The valuation premium relative to traditional ad-tech peers appears to be supported by the company's unique position as a neutral demand-side platform. However, the compression in forward multiples suggests that the market is increasingly sensitive to the sustainability of the company's take-rate in the face of emerging retail media competition.
As reported in financial statements, ROIC has fluctuated between 1.4% and 8.4% over the last ten quarters, indicating that while the core platform is highly scalable, the persistent issuance of stock-based compensation creates a drag on the effective return generated for common equity holders.
The volatility in ROIC suggests that the company's ability to compound capital is heavily dependent on seasonal advertising volume rather than consistent operational efficiency. Investors should monitor whether future platform enhancements can drive a more stable return profile that is less susceptible to the cyclical nature of ad spend.
According to quarterly filings, the company's asset turnover remains low at approximately 0.12, which is a structural byproduct of the net revenue accounting model where the vast majority of gross advertising spend does not pass through the company's own balance sheet as traditional inventory.
The company's role as a clearinghouse for advertising budgets creates a unique working capital profile that effectively functions as a negative cash conversion cycle. This structure provides significant liquidity, but it also necessitates rigorous oversight of agency credit risk, as any payment delays could rapidly impair the firm's cash position.
Based on the latest balance sheet data, the company maintains a minimal debt-to-equity ratio of 0.17, which, when compared to the broader communication services sector, highlights a fortress-like balance sheet that is largely insulated from the risks associated with rising interest rates or debt service obligations.
The lack of meaningful debt provides the firm with significant strategic flexibility to pursue organic R&D or share repurchases without the constraints of restrictive covenants. This conservative approach appears to be a deliberate management strategy to navigate the inherent volatility of the digital advertising market.
Investors frequently misapply standard P/E multiples to TTD, failing to account for the significant distortion caused by non-cash stock-based compensation, which consistently obscures the true underlying earning power of the platform's programmatic advertising business model as reported in recent SEC filings.
A more appropriate metric for this business model would be an adjusted free cash flow yield, which strips out the impact of equity-based dilution and better reflects the cash-generating capability of the platform. Relying solely on GAAP earnings may lead to an inaccurate assessment of the company's valuation relative to its actual cash-generating potential.
Includes 30+ ratios · 12 years · Updated daily
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Quick answers to the most common questions about buying TTD stock.
The Trade Desk, Inc.'s current P/E ratio is 21.2x. The historical average is 102.9x.
The Trade Desk, Inc.'s current EV/EBITDA is 12.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 40.6x.
The Trade Desk, Inc.'s return on equity (ROE) is 16.3%. The historical average is 19.2%.
Based on historical data, The Trade Desk, Inc. is trading at a P/E of 21.2x. Compare with industry peers and growth rates for a complete picture.
The Trade Desk, Inc. has 78.6% gross margin and 20.3% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
The Trade Desk, Inc.'s Debt/EBITDA ratio is 0.6x, indicating low leverage. A ratio below 2x is generally considered financially healthy.