The Trade Desk, Inc.
The Trade Desk, Inc. operates as a technology company in the United States and internationally. The company creates, manages, and optimizes digital advertising campaigns across ad formats, channels and devices, including CTV and other video, display, audio, and native, on a multitude of devices, suc…
What to know about TTD
The Trade Desk, Inc. is a Communication Services company with a mixed financial profile. It scores well on cash flow and valuation, but size is worth keeping an eye on.
Should you consider TTD?
Based on 31 financial metrics and sector comparison. Not financial advice.
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The Trade Desk, Inc. is a Communication Services company with a mixed overall financial profile — it ranks near the bottom of Communication Services stocks (20 of 24).
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Profitability is roughly average for the S&P 500 — not a standout in either direction.
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Valuation looks attractive — the stock is priced reasonably relative to its earnings and sales compared to most peers. You're not overpaying for the business.
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The company is growing at a reasonable pace — not the fastest, but consistently moving in the right direction.
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This stock pays no dividend — your return depends entirely on the share price rising over time.
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The stock is more volatile than most S&P 500 names — it can swing sharply in both directions. This suits investors comfortable with bigger short-term moves.
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Analyst sentiment is cautious and short interest is relatively elevated — meaning some professional investors are actively betting the price will fall. Worth understanding why.
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There are several areas of concern. This may suit investors with a higher risk tolerance or a specific contrarian view on the Communication Services sector.
At a glance
How it scores
We look at 31 different financial metrics and group them into categories. Here's how TTD compares to the other S&P 500 stocks.
Dive deeper — all 31 metrics 9 categories · valuation, growth, health, dividends & more Show all Hide
Valuation
Is the stock cheap or expensive relative to its earnings, sales, and assets? Lower multiples often mean better value.
| Metric | Value | vs S&P 500 |
|---|---|---|
| P/E Ratio (Trailing) | 21.03 | Above avg |
| Forward P/E | 8.61 | Top 25% |
| PEG Ratio | 0.90 | Top 25% |
| Price to Sales | 2.93 | Above avg |
| Price to Book | 3.55 | Average |
| EV/EBITDA | 11.17 | Top 25% |
| Earnings Yield | 4.75% | Above avg |
Profitability
How efficiently does the company turn revenue into profit? Higher margins mean more money kept from each dollar earned.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Gross Margin | 77.83% | Top 25% |
| Operating Margin | 9.68% | Below avg |
| Net Profit Margin | 14.57% | Above avg |
| Return on Equity | 16.74% | Above avg |
| Return on Invested Capital | 6.57% | Above avg |
Growth
How fast is the business expanding? Strong growth in revenue and earnings signals increasing market demand.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Revenue Growth (YoY) | 11.80% | Above avg |
| Revenue Growth (3Y CAGR) | 22.44% | Top 25% |
| EPS Growth (YoY) | -20.00% | Below avg |
| Free Cash Flow Growth | 23.81% | Above avg |
Health
Can the company cover its debts and obligations? A healthy balance sheet reduces the risk of financial trouble.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Current Ratio | 1.68 | Above avg |
| Debt to Equity | 0.17 | Top 25% |
| Interest Coverage | 8.58 | Above avg |
| Altman Z-Score | 2.46 | Average |
Dividends
Does the company pay shareholders, and is that payment growing and sustainable?
| Metric | Value | vs S&P 500 |
|---|---|---|
| Dividend Yield | — | N/A |
| Payout Ratio | — | N/A |
| Dividend Growth (5Y) | — | N/A |
Cash Flow
Is real cash flowing into the business — not just accounting profits? Strong cash flow funds growth and dividends.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Free Cash Flow Yield | 9.53% | Top 25% |
| OCF to Sales | 36.82% | Top 25% |
Risk
How volatile is the stock compared to the broader market? Lower beta and volatility mean a smoother ride.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Beta (1-Year) | 1.02 | Average |
| Volatility (30-Day) | 59.50% | Below avg |
Sentiment
What do analysts and short-sellers think? High analyst ratings and low short interest signal broad confidence.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Short % of Float | 21.02% | Below avg |
| Avg. Analyst Rating | 2.54 | Below avg |
| Target Upside % | 32.10% | Top 25% |
Size
How large is the company by market value? Size affects stability, growth potential, and index inclusion.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Market Capitalization | 8.7B | Below avg |
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