TTD Trade Desk (The)
$12.51
▼ 4.7%Updated Oct 16, 2:25 PM ET
Report Card
TTD at a glance — five pillars scored 0–100 from real filed financials.
How the 0–100 rating is calculatedOverall: Favorable · 64/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
Price — Past Year
▼ Down 73.0% in the year to Jul 6, 2026
Key Metrics
Market Cap
$8.98B
P/E
13.59x
Forward P/E (est.)
12.52x
ROE
16.9%
Revenue Growth
15.6%
EPS Growth
8.5%
Profit Margin
14.6%
FCF Yield
2.4%
Debt / Equity
0x
ROIC
18.0%
Interest Coverage
380.21x
Current Ratio
1.72x
Dividend Yield
—
Implied Growth (rev. DCF)
0.1%
Rating Score
64/100
Business Overview
Trade Desk (The) (TTD) is a mid-cap company in the Advertising industry, part of the Communication Services sector of the S&P 500, with a market value around $8.98B.
In its latest reported year it generated about $2.90B in revenue and $443.30M in net profit.
Our model rates TTD Favorable (64/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Economic Moat
Evidence of durable competitive advantage in the filed financials (10 years of history).
Profit margins and economic moats, explainedSome durable-advantage evidence, but not across the board — dig into which ingredient is weak and whether it's cyclical or structural.
16.0% average over the last 3 years
±6.2 pts around 17.3% across 10 years
grew in 9 of the last 9 year-over-year periods
positive in 10 of 10 years
18.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical Analysis (Educational)
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what TTD's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. TTD trades near $12.51, below its 50-day average ($21.00) and 200-day average ($32.32). Price below both averages is a downtrend — momentum is against buyers for now.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 52 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. TTD's is $0.98 (~7.8% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. In the month to Jul 6, 2026, TTD found buyers near $16.98 (support) and sellers near $21.91 (resistance); its 52-week range then was $16.98–$91.45. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.5× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. The indicators were last computed on Jul 6, 2026; the price is current.
Revenue Growth
4Y CAGR
24.7%
Revenue moved from $202.93M in 2016 to $2.90B in 2025, a 34.4% compound annual growth rate. The most recent year grew a strong 15.6% year over year. Consistent top-line growth is one sign of healthy demand.
Profitability
Gross Margin
77.8%
Operating Margin
20.3%
Net Margin
15.3%
ROE
16.9%
Trade Desk (The) keeps about 14.6% of each sales dollar as net profit, with a 77.8% gross margin and 20.3% operating margin. Return on equity is 16.9% and return on invested capital about 18.0%. Margins are moderate — typical of a competitive but profitable business.
Debt Analysis
Total Debt
—
Net Debt
—
Net Debt / EBITDA
—
Debt / Equity
0x
Leverage: debt-to-equity is 0.0x, and operating profit covers interest about 380.2x, with a current ratio of 1.7x. That is a conservative balance sheet — a cushion in downturns.
Cash Flow Analysis
Operating CF
$992.72M
Free Cash Flow
$795.71M
FCF Margin
27.5%
In the latest year Trade Desk (The) produced about $992.72M of operating cash flow and $795.71M of free cash flow after capital spending. That is a free-cash-flow yield of about 2.4% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
Valuation Analysis
P/E
13.59x
P/S
3.08x
P/B
4.88x
EV / EBITDA
—
TTD trades at 13.6x trailing earnings (about 12.5x on estimated forward earnings), 3.1x sales, and 4.9x book value. Reverse-engineering today's price implies the market expects roughly 0.1% long-term free-cash-flow growth. That is an undemanding multiple — potentially cheap if the business is stable.
DCF Fair Value (Educational)
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
How this DCF estimate is calculatedDCF fair value / share
—
Current price
$12.51
Starting FCF (latest 10-K)
$795.71M
Growth, years 1–5
15.6%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Metrics vs. Sector Range
Where TTD sits versus the Communication Services companies we cover.
Bands show the middle half (25th–75th percentile) of the 44 Communication Services companies in our coverage that have fundamentals data — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
Sector Peer Comparison
How TTD stacks up against its Communication Services peers — valuation, profitability, and growth versus the sector median.
Among the 44 rated Communication Services companies we cover, TTD ranks #12 by our overall rating. It trades at a discount versus the sector on earnings (13.6x P/E vs. 17.4x median) with a higher return on equity (16.9% vs. 14.9%) and faster revenue growth (15.6% vs. 5.3%).
P/E vs sector
13.6x
median 17.4x
ROE vs sector
16.9%
median 14.9%
Growth vs sector
15.6%
median 5.3%
Sector rank
#12
of 44 rated
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Communication Services companies by sub-industry and size, preferring ones with full data. Sector medians and rank use the 44 rated companies among the 95 Communication Services stocks we cover. Educational, not a recommendation.
5-Year Projection Model
Project revenue → earnings → price. Edit the assumptions to build your own case.
What drives this projection, and its limits2030 scenario price range (Base Case)
$10.17 – $17.80
vs. $12.51 today · implied CAGR -4% – 7%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $3.36B | $3.90B | $4.52B | $5.24B | $6.08B |
| Net income | $503.95M | $584.59M | $678.12M | $786.62M | $912.48M |
| EPS | $0.70 | $0.81 | $0.94 | $1.10 | $1.27 |
| Share price (low) | $5.62 | $6.52 | $7.56 | $8.77 | $10.17 |
| Share price (high) | $9.83 | $11.40 | $13.23 | $15.34 | $17.80 |
| CAGR (low–high) | -55% / -21% | -28% / -5% | -15% / 2% | -9% / 5% | -4% / 7% |
Educational scenario model, not a forecast or investment advice. It starts from the latest annual revenue in SEC filings. By default, growth is trailing revenue growth (held between 3% and 45% a year), the net margin is the latest one (held between 3% and 50%, so a loss-making company is modeled with a small profit), and the Base case P/E runs from 60% to 100% of today's. Carrying recent growth forward five years can miss badly in either direction. Outputs are only as good as the assumptions.
Bull Case
The case for TTD:
- Revenue is growing 15.6% a year, a sign of real demand.
- Strong return on equity (16.9%) shows capital is put to work well.
- A conservative balance sheet (debt/equity 0.0x) lowers risk.
- Our model's overall read is Favorable (64/100).
Bear Case
The case against TTD:
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
Investment Thesis
On balance, the fundamentals screen favourably: Trade Desk (The) is a mid-cap communication services business still growing nicely, with solid profitability, and a sound balance sheet. It trades at 13.6x earnings, which our model scores Favorable (64/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Latest SEC Filings
TTD's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen. How to read a 10-K
In the Idea Lab
TTD — frequently asked questions
Is TTD a good stock to buy?
We don't give buy or sell advice. Our model rates Trade Desk (The) Favorable (64/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is TTD's rating on The Stocks School?
Trade Desk (The) currently scores 64/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does TTD's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Trade Desk (The)'s SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for TTD calculated?
It's a scenario model. It starts from the latest annual revenue and net margin in SEC filings, grows revenue at an assumed rate (trailing revenue growth by default), and applies a P/E range built around today's multiple to show the resulting share-price range. When a stock has no growth or P/E data, the starting values are placeholders. It's a tool for thinking, not a prediction.
Is this TTD analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell TTD. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.