* Note: Prices are in Million (M) USD.
Description:
Trade Desk, Inc. is a technology company in the United States and internationally. The company is headquartered in Ventura, California.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $1,123 M
Debt : $81 M
EBITDA : $770 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Technology
Industry: Software - application
Based on sector, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 11.93
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Error: Invalid cash flow data provided.Using default values for calculation.
Based on default values, 1 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-12-31): $2,896 M
Revenue 5 Years Ago (2020-12-31): $836 M
Total Growth over 5 Years: 246.4%
5-Year Revenue CAGR (Historical): 28.2%
Forward 5-Year CAGR (Tapered): 14.1%
Since historical Revenue CAGR is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-12-31): $483 M
Share Count 5 Years Ago (2021-12-31): $499 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $1.00
Trailing 12-Month Earnings Per Share (EPS): $1.16
Average Earnings Per Share (EPS): $1.08
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0.00%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 12 valid ROE years (max 20).Average ROE: 15.8%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $12.91
52-Week Low: $11.62
Threshold Price (15% Above 52-Week Low): $13.36
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $6,146 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
No positive free cash flow found (TTM or annual) to compute Owners' Earnings per share.
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 33 points to above Trade Desk Inc (TTD) stock.
Last 4 Years Avg PE
34.69, Fair Value PE
25, Industry Based PE
30, Growth Based PE
15, ROE Based PE
15.8, Risk-Free Anchored PE (25% MoS)
15.03. Based on these 6 values, average assigned is
22.59. Value-Trades has assined P/E value
22.58. An average (Current Year EPS + Next Year EPS) earning per share is
$1.0817.
Fair value using multiple P/Es (blended): $24.43 (PE 22.59 × EPS $1.08)
So the Final Fair Value is: $24.43
Understanding the Value-Trades P/E Blend (click to expand)
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What goes into the blended P/E?
- 20-Year Avg P/E — Long-run market baseline; conservative anchor.
- Fair Value P/E — Score-based (cash, debt, sector, etc.).
- Industry P/E — Peer group norm.
- Growth-Based P/E — Uses tapered growth rates, floored at 15.
- RCFC-Based P/E — Maps cash conversion efficiency.
- ROE-Based P/E — Higher ROE supports higher multiples.
- Risk-Free Anchored P/E — Macro floor tied to 10y yield w/ MoS.
How it works
- Extreme values are clamped/filtered (IQR method).
- Anchors (20y avg, RCFC/ROE, risk-free) are always kept if valid.
- Final fair value = min(Blended PE × EPS, Avg PE × EPS).
P/E Reference Summary
Using EPS: $1.08
| Source |
P/E Ratio |
Implied Fair Value |
| Market (1 Yr Ago) | 24.49 | $26.49 |
| 4 Yrs Avg-PE | 34.69 | $37.52 |
| Value-Trades Assigned | 22.58 | $24.42 |
Note: Only 4 years of reliable P/E data available. Fair value is calculated using blended models to reduce bias.
