Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Trade Desk Inc., EBITDA calculation
US$ in thousands
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).
The financial information reveals a consistent upward trend in earnings performance across the observed period. Specifically, net income, earnings before tax (EBT), earnings before interest and tax (EBIT), and earnings before interest, tax, depreciation and amortization (EBITDA) all demonstrate growth from 2021 to 2025.
- EBITDA Trend
- EBITDA experienced a steady increase throughout the period. Starting at US$165.285 thousand in 2021, it rose to US$185.809 thousand in 2022, then significantly accelerated to US$350.069 thousand in 2023. This growth continued, reaching US$596.306 thousand in 2024 and culminating in US$776.329 thousand in 2025. The rate of increase appears to be accelerating, particularly from 2022 to 2025.
- Relationship between Net Income, EBT, EBIT, and EBITDA
- A consistent pattern exists where EBITDA exceeds EBIT, which in turn exceeds EBT, and finally EBT exceeds net income in each year. This is expected, as each subsequent metric incorporates additional expenses. The differences between these metrics generally widen over time, indicating increasing levels of depreciation, amortization, interest, and taxes as earnings grow.
- Growth Rates
- While specific growth rates are not explicitly calculated, the absolute increases in each metric suggest strong performance. The largest year-over-year increases are observed between 2022 and 2023, and again between 2023 and 2024, for all metrics. This suggests a period of particularly robust expansion during those years.
Overall, the presented financial information indicates a positive trajectory in profitability. The consistent growth in EBITDA, alongside the increasing differences between earnings metrics, suggests a healthy and expanding business operation.
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Enterprise Value to EBITDA Ratio, Current
Trade Desk Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 10,096,594) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 776,329) |
| Valuation Ratio | |
| EV/EBITDA | 13.01 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Alphabet Inc. | 19.60 |
| Comcast Corp. | 4.18 |
| Meta Platforms Inc. | 14.25 |
| Netflix Inc. | 13.21 |
| Walt Disney Co. | 11.22 |
| EV/EBITDA, Sector | |
| Media & Entertainment | 15.32 |
| EV/EBITDA, Industry | |
| Communication Services | 13.29 |
Based on: 10-K (reporting date: 2025-12-31).
1 Click competitor name to see calculations.
If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.
Enterprise Value to EBITDA Ratio, Historical
Trade Desk Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Enterprise value (EV)1 | 10,034,716) | 33,826,652) | 35,637,119) | 31,093,109) | 38,269,025) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 776,329) | 596,306) | 350,069) | 185,809) | 165,285) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 12.93 | 56.73 | 101.80 | 167.34 | 231.53 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Alphabet Inc. | 21.76 | 16.81 | 17.01 | 14.66 | 18.08 | |
| Comcast Corp. | 4.24 | 5.84 | 7.10 | 9.60 | 8.45 | |
| Meta Platforms Inc. | 17.46 | 19.48 | 19.72 | 12.19 | 10.85 | |
| Netflix Inc. | 12.20 | 16.03 | 11.85 | 8.40 | 9.51 | |
| Walt Disney Co. | 12.19 | 16.57 | 17.34 | 17.80 | 34.53 | |
| EV/EBITDA, Sector | ||||||
| Media & Entertainment | 17.20 | 16.21 | 15.70 | 13.07 | 14.78 | |
| EV/EBITDA, Industry | ||||||
| Communication Services | 14.65 | 13.81 | 13.01 | 11.85 | 11.67 | |
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).
3 2025 Calculation
EV/EBITDA = EV ÷ EBITDA
= 10,034,716 ÷ 776,329 = 12.93
4 Click competitor name to see calculations.
The Enterprise Value to EBITDA ratio demonstrates a significant declining trend over the observed period. Initially high, the ratio decreased substantially from 2021 to 2025, coinciding with increases in EBITDA and a decrease in Enterprise Value.
- Enterprise Value to EBITDA Trend
- In 2021, the ratio stood at 231.53. A considerable decrease was observed in 2022, falling to 167.34. This downward trend continued in 2023, with the ratio reaching 101.80. The rate of decline accelerated in 2024, with the ratio dropping to 56.73. By 2025, the ratio had fallen dramatically to 12.93.
- Enterprise Value
- Enterprise Value experienced a decrease from US$38,269,025 thousand in 2021 to US$31,093,109 thousand in 2022. A further decrease to US$35,637,119 thousand was noted in 2023, followed by US$33,826,652 thousand in 2024. A substantial decline occurred in 2025, with Enterprise Value reported at US$10,034,716 thousand.
- EBITDA
- EBITDA exhibited a consistent upward trend throughout the period. It increased from US$165,285 thousand in 2021 to US$185,809 thousand in 2022. Further growth was observed in 2023, reaching US$350,069 thousand, and continued to rise significantly to US$596,306 thousand in 2024. By 2025, EBITDA reached US$776,329 thousand.
The combined effect of decreasing Enterprise Value and increasing EBITDA is the primary driver of the observed decline in the EV/EBITDA ratio. The ratio’s substantial reduction suggests a potentially increasing valuation relative to earnings before interest, taxes, depreciation, and amortization.
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