Trade Desk Valuation

TTD Stock  USD 87.42  0.21  0.24%   
At this time, the company appears to be fairly valued. Trade Desk has a current Real Value of $84.48 per share. The regular price of the company is $87.42. Our model measures the value of Trade Desk from inspecting the company fundamentals such as Return On Equity of 0.0836, operating margin of 0.24 %, and Shares Outstanding of 445.02 M as well as reviewing its technical indicators and probability of bankruptcy. In general, most investors recommend purchasing undervalued stocks and exiting overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other.
Price Book
19.7136
Enterprise Value
41.5 B
Enterprise Value Ebitda
147.8125
Price Sales
22.031
Forward PE
123.4568
Fairly Valued
Today
87.42
Please note that Trade Desk's price fluctuation is very steady at this time. Calculation of the real value of Trade Desk is based on 3 months time horizon. Increasing Trade Desk's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Trade Desk is useful when determining the fair value of the Trade stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Trade Desk. Since Trade Desk is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Trade Stock. However, Trade Desk's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  87.42 Real  84.48 Target  86.79 Hype  88.55 Naive  95.14
The real value of Trade Stock, also known as its intrinsic value, is the underlying worth of Trade Desk Company, which is reflected in its stock price. It is based on Trade Desk's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Trade Desk's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Trade Desk's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
84.48
Real Value
87.66
Upside
Estimating the potential upside or downside of Trade Desk helps investors to forecast how Trade stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Trade Desk more accurately as focusing exclusively on Trade Desk's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
0.170.210.26
Details
Hype
Prediction
LowEstimatedHigh
85.3788.5591.73
Details
Naive
Forecast
LowNext ValueHigh
91.9595.1498.32
Details
33 Analysts
Consensus
LowTarget PriceHigh
78.9886.7996.34
Details

Trade Desk Investments

(179.7 Million)

Trade Desk Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Trade Desk's current stock value. Our valuation model uses many indicators to compare Trade Desk value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Trade Desk competition to find correlations between indicators driving Trade Desk's intrinsic value. More Info.
Trade Desk is currently regarded as top stock in beta category among related companies. It is currently regarded as top stock in price to book category among related companies fabricating about  13.13  of Price To Book per Beta. The current year's Price To Book Ratio is expected to grow to 26.42. Comparative valuation analysis is a catch-all model that can be used if you cannot value Trade Desk by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Trade Desk's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Trade Desk's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Trade Desk's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Trade Desk and how it compares across the competition.

About Trade Desk Valuation

The stock valuation mechanism determines the current worth of Trade Desk on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Trade Desk. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Trade Desk based exclusively on its fundamental and basic technical indicators. By analyzing Trade Desk's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Trade Desk's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Trade Desk. We calculate exposure to Trade Desk's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Trade Desk's related companies.
Last ReportedProjected for 2024
Gross Profit1.6 B1.7 B
Pretax Profit Margin 0.14  0.18 
Operating Profit Margin 0.10  0.19 
Net Profit Margin 0.09  0.10 
Gross Profit Margin 0.81  0.63 

8 Steps to conduct Trade Desk's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Trade Desk's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Trade Desk's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Trade Desk's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Trade Desk's revenue streams: Identify Trade Desk's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Trade Desk's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Trade Desk's growth potential: Evaluate Trade Desk's management, business model, and growth potential.
  • Determine Trade Desk's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Trade Desk's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.

Trade Desk Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Trade Desk does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding500.2 M
Quarterly Earnings Growth Y O Y0.366
Forward Price Earnings123.4568

Trade Desk Current Valuation Indicators

Valuation refers to the process of determining the present value of Trade Desk and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Trade we look at many different elements of the entity such as Trade's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Trade Desk's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Trade Desk's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Trade Desk, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Trade Desk's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Trade Desk's worth.
When determining whether Trade Desk is a strong investment it is important to analyze Trade Desk's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Trade Desk's future performance. For an informed investment choice regarding Trade Stock, refer to the following important reports:
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Trade Desk. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in estimate.
For information on how to trade Trade Stock refer to our How to Trade Trade Stock guide.
You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

Complementary Tools for Trade Stock analysis

When running Trade Desk's price analysis, check to measure Trade Desk's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Trade Desk is operating at the current time. Most of Trade Desk's value examination focuses on studying past and present price action to predict the probability of Trade Desk's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Trade Desk's price. Additionally, you may evaluate how the addition of Trade Desk to your portfolios can decrease your overall portfolio volatility.
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Is Trade Desk's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Trade Desk. If investors know Trade will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Trade Desk listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.366
Earnings Share
0.36
Revenue Per Share
3.978
Quarterly Revenue Growth
0.234
Return On Assets
0.027
The market value of Trade Desk is measured differently than its book value, which is the value of Trade that is recorded on the company's balance sheet. Investors also form their own opinion of Trade Desk's value that differs from its market value or its book value, called intrinsic value, which is Trade Desk's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Trade Desk's market value can be influenced by many factors that don't directly affect Trade Desk's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Trade Desk's value and its price as these two are different measures arrived at by different means. Investors typically determine if Trade Desk is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Trade Desk's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.