Price to Operating Profit (P/OP)
since 2016
Calculation
Trade Desk Inc., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Income from operations1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 27, 2026 | 19.24 | = | 23.82 | ÷ | 1.24 | 1.24 | = | 589,321 | ÷ | 475,977,047 | |
| Feb 21, 2025 | 83.69 | = | 72.06 | ÷ | 0.86 | 0.86 | = | 427,167 | ÷ | 496,088,557 | |
| Feb 15, 2024 | 184.64 | = | 75.71 | ÷ | 0.41 | 0.41 | = | 200,480 | ÷ | 488,936,831 | |
| Feb 15, 2023 | 286.30 | = | 66.30 | ÷ | 0.23 | 0.23 | = | 113,654 | ÷ | 490,794,798 | |
| Feb 16, 2022 | 314.28 | = | 80.91 | ÷ | 0.26 | 0.26 | = | 124,817 | ÷ | 484,832,580 | |
| Feb 19, 2021 | 296.81 | = | 90.34 | ÷ | 0.30 | 0.30 | = | 144,208 | ÷ | 473,796,260 | |
| Feb 28, 2020 | 116.70 | = | 28.73 | ÷ | 0.25 | 0.25 | = | 112,196 | ÷ | 455,737,000 | |
| Feb 22, 2019 | 81.19 | = | 19.77 | ÷ | 0.24 | 0.24 | = | 107,323 | ÷ | 440,736,240 | |
| Feb 28, 2018 | 33.97 | = | 5.63 | ÷ | 0.17 | 0.17 | = | 69,356 | ÷ | 418,501,360 | |
| Feb 16, 2017 | 22.75 | = | 3.34 | ÷ | 0.15 | 0.15 | = | 57,518 | ÷ | 391,792,430 |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Trade Desk Inc. Annual Report.
The Price to Operating Profit (P/OP) ratio, alongside its constituent components, exhibits a dynamic pattern over the observed period. Initially, the share price and operating profit per share both demonstrated modest growth. However, the P/OP ratio experienced significant fluctuations, culminating in a substantial increase before a recent decline.
- Overall Trend
- From 2017 to 2021, the P/OP ratio increased dramatically, moving from 22.75 to a peak of 296.81. This suggests a growing investor premium placed on each dollar of operating profit. Following 2021, a marked decrease in the P/OP ratio is evident, falling to 19.24 by 2026. This indicates a potential correction in valuation or a shift in investor sentiment.
- Share Price Behavior
- The share price generally increased until 2021, mirroring the rise in the P/OP ratio. A peak of 90.34 was reached in 2021. Subsequent years show a decline, with the share price falling to 23.82 by 2026. This decline contributes significantly to the reduction in the P/OP ratio observed in later periods.
- Operating Profit per Share Behavior
- Operating profit per share showed consistent, albeit moderate, growth from 2017 to 2021, increasing from 0.15 to 0.30. After 2021, operating profit per share experienced a slight decrease to 0.23 in 2023, followed by a substantial increase to 1.24 by 2026. This recent growth in operating profit per share partially offsets the impact of the declining share price on the P/OP ratio, but is not sufficient to reverse the overall downward trend.
- Peak and Subsequent Decline
- The period between 2017 and 2021 represents a phase of significant market optimism, reflected in the escalating P/OP ratio. The subsequent decline from 2022 onwards suggests a reassessment of the company’s valuation, potentially influenced by factors such as changing market conditions, increased competition, or shifts in investor expectations. The ratio’s movement in 2025 and 2026 indicates a potential stabilization, albeit at a considerably lower level than the peak.
In summary, the P/OP ratio demonstrates a clear shift from substantial growth to a significant decline. While operating profit per share has shown recent improvement, the dominant influence of the decreasing share price has resulted in a considerably lower P/OP ratio by the end of the analyzed period.
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Comparison to Competitors
Trade Desk Inc., P/OP, long-term trends, comparison to competitors
| Trade Desk Inc. | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | |
|---|---|---|---|---|---|
| Feb 27, 2026 | 19.24 | 31.06 | 5.18 | 22.43 | 27.28 |
| Feb 21, 2025 | 83.69 | 20.97 | 5.46 | 25.09 | 39.91 |
| Feb 15, 2024 | 184.64 | 20.92 | 7.93 | 25.90 | 35.50 |
| Feb 15, 2023 | 286.30 | 18.01 | 12.00 | 16.91 | 28.85 |
| Feb 16, 2022 | 314.28 | 24.86 | 10.89 | 13.84 | 27.71 |
| Feb 19, 2021 | 296.81 | 33.85 | 13.47 | 23.10 | 52.02 |
| Feb 28, 2020 | 116.70 | 29.05 | 9.51 | 24.90 | 57.83 |
| Feb 22, 2019 | 81.19 | 30.27 | 8.71 | 19.10 | 89.46 |
| Feb 28, 2018 | 33.97 | 28.74 | 10.98 | 27.76 | 147.26 |
| Feb 16, 2017 | 22.75 | 23.36 | 10.61 | 30.46 | 161.49 |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).