One-glance verdict
Undervalued
$69.10 our estimate vs market $14.34
Wall Street consensus: $13.57 (-80.4% lower than our fair-value estimate)
79% below our estimate, below the bear case
Fundamentals snapshot
The Trade Desk, Inc.
TTD · NGM · Communication Services · Advertising Agencies
Current price
$14.34
52-week range
$12.83 - $56.39
Market cap
$6.74B
Balance sheet
Healthy
8.58x Adequate
Net cash $1.05B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 3.2% last year.
- Reward Returns 15.4% on equity, ahead of 33% of its peers.
- Reward Free cash flow was positive in 10/10 years.
What this company does
The Trade Desk, Inc.
The Trade Desk provides a technology platform that helps companies automatically buy advertising space across websites, mobile apps, and streaming TV services. It makes money primarily by taking a percentage of the ad dollars that its clients spend using its software. This matters because as advertising continues to move from traditional cable TV to digital streaming, The Trade Desk's platform is positioned to manage more of that spending.
How the company got here
The Trade Desk was started in 2009 by Jeff Green and Dave Pickles to help advertisers buy digital ads in a more modern, automated way. A key moment was their initial public offering (IPO) in 2016, which gave them the funds to grow significantly. Unlike some competitors, they chose to only work for the ad buyers, not the sellers, which built trust with their customers. Over the years, they've grown by expanding into new advertising channels like connected TV and by making strategic acquisitions to improve their technology.
What it actually does
The Trade Desk provides a software platform that helps companies and their advertising agencies buy digital ads. Think of it like a stock trading platform, but instead of buying stocks, advertisers are bidding to place their ads on websites, streaming services, and mobile apps. The company's technology uses data and artificial intelligence to help advertisers reach the right audience at the right time and get the most for their money. They don't own the websites or apps where the ads appear; they are an independent platform focused on getting the best results for the advertiser.
Self-Service Advertising Platform
The company operates as a single business segment centered around its cloud-based, self-service software. Advertisers and their agencies pay The Trade Desk a fee, which is typically a percentage of the amount they spend on advertising through the platform. This is the company's primary way of making money. This platform allows ad buyers to create, manage, and track their advertising campaigns across various digital channels, including video, audio, and display ads on computers, mobile devices, and connected TVs.
What management is betting on now
The company is heavily focused on expanding its presence in the growing market of connected TV advertising. They are also investing in artificial intelligence to make their platform smarter and more efficient for advertisers. Another key strategy is to make the ad-buying process more transparent and to provide better ways to measure how well ads are working, especially as traditional tracking methods like cookies become less common. Management is also focused on growing their business in international markets and in the area of retail media, which involves placing ads on retailers' websites and apps.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$224.62M
FY2024 Q4
$179.21M
FY2025 Q1
$232.32M
FY2025 Q2
$119.77M
FY2025 Q3
$158.35M
FY2025 Q4
$285.27M
FY2026 Q1
$279.06M
FY2026 Q2
$140.37M
Revenue
$715.06M
Net income
$64.39M
Diluted EPS
0.14
Operating cash flow
$153.59M
Free cash flow
$140.37M
Fetching…
Sources
Revenue
$688.86M
Net income
$40.00M
Diluted EPS
0.08
Operating cash flow
$391.81M
Free cash flow
$279.06M
Fetching…
Sources
Revenue
$846.79M
Net income
$186.95M
Diluted EPS
0.39
Operating cash flow
$311.59M
Free cash flow
$285.27M
Fetching…
Sources
Revenue
$739.43M
Net income
$115.55M
Diluted EPS
0.23
Operating cash flow
$224.69M
Free cash flow
$158.35M
Fetching…
Sources
Revenue
$694.04M
Net income
$90.13M
Diluted EPS
0.18
Operating cash flow
$165.01M
Free cash flow
$119.77M
Fetching…
Sources
Revenue
$616.02M
Net income
$50.68M
Diluted EPS
0.10
Operating cash flow
$291.43M
Free cash flow
$232.32M
Fetching…
Sources
Revenue
$741.01M
Net income
$182.23M
Diluted EPS
0.36
Operating cash flow
$199.40M
Free cash flow
$179.21M
Fetching…
Sources
Revenue
$628.02M
Net income
$94.16M
Diluted EPS
0.19
Operating cash flow
$273.32M
Free cash flow
$224.62M
Fetching…
Sources
Is it cheap or expensive?
Fair value $69.10 vs current price $14.34
Wall Street consensus is the average analyst price target: $13.57 (-80.4% lower than our fair-value estimate).
Our most-likely fair value is $69.10 a share — about 381.8% above today's price of $14.34, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $1.1B - more cash than debt. Interest coverage 8.6x.
Net debt
$-1.05B
Interest coverage
8.58x
The Trade Desk, Inc.'s profit covers its interest bill about 8.6 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
TTD
BASELINE
The Trade Desk, Inc.
Total debt $434.11M Interest coverage 8.58x This is the baseline the peer rows are being compared against.
Total debt $120.79B Interest coverage 175.32x +1,944% vs TTD Carries about 20.4x more debt cushion than TTD.
Total debt $251.64B Interest coverage 35.17x +310% vs TTD Carries about 4.1x more debt cushion than TTD.
Total debt $416.98M Interest coverage 5.17x -40% vs TTD Carries about 1.7x less debt cushion than TTD.
Total debt $40.91M Interest coverage -3.16x -100% vs TTD This peer has almost no interest-payment cushion compared with TTD.
Total debt $148.19M Interest coverage 82.39x +861% vs TTD Carries about 9.6x more debt cushion than TTD.
What you should know
The case for and against TTD
3 Rewards
0 Risks
Rewards
-
Revenue grew 3.2% last year.
-
Returns 15.4% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
17.07x
Forward P/E
14.23x
P/B
2.62x
P/S
2.25x
EV/EBITDA
8.15x
PEG ratio
1.03x
Profitability
How much profit each dollar creates
Gross margin
76.9%
Operating margin
14.2%
Net margin
13.6%
ROE
15.4%
ROA
6.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.17x
Current ratio
1.72x
Quick ratio
1.68x
Total debt
$434.11M
Total cash
$1.49B
Growth
How the business has been compounding
Revenue TTM
$2.99B
Revenue 5Y CAGR
24.7%
EPS TTM
0.84
EPS 5Y CAGR
101.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.08B
Free CF TTM
$795.71M
FCF margin
26.6%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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