* 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 : $896 M
Debt : $344 M
EBITDA : $550 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: 27.68
Since Forward PE Ratio is between 25 - 35, 1 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 11 overlapping fiscal years (max 20).Average Free Cash Flow: $216 M
Average Revenue: $892 M
Revenue Converted To Free Cash Flow (%): 24.3%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 15, 3 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $2,445 M
Revenue 4 Years Ago (2020-12-31): $836 M
Last 5 Years Average Revenue Growth: 38%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $502 M
Share Count 5 Years Ago (2020-12-31): $490 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $2.20
Trailing 12-Month Earnings Per Share (EPS): $1.75
Average Earnings Per Share (EPS): $1.98
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
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 11 valid ROE years (max 20).Average ROE: 15.6%
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: $55
52-Week Low: $43
Threshold Price (15% Above 52-Week Low): $49
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $26,726 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 24 points to above Trade Desk Inc (TTD) stock.
Last 1 Years Avg PE 40, Fair Value PE 25, Industry Based PE 30, Growth Based PE 38, RCFC Based PE 31.42, ROE Based PE 22.49, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 29.14. Value-Trades has assined P/E value 29.14. Since an average (Current Year EPS + Next Year EPS) earning per share is $1.975.
The fair value of Trade Desk Inc (TTD) stock should be (29.14 x $1.975) = $57.56.
