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: 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).
- Net Income
- The net income shows a fluctuating trend over the five-year period. From 2020 to 2021, there was a significant decline from 242,317 thousand US dollars to 137,762 thousand. The downward trajectory continued in 2022, reaching the lowest point at 53,385 thousand. However, from 2023 onwards, net income rose sharply, climbing to 178,940 thousand in 2023 and further to 393,076 thousand in 2024, surpassing the initial 2020 level.
- Earnings Before Tax (EBT)
- EBT followed a somewhat different pattern compared to net income. After a decline from 143,903 thousand US dollars in 2020 to 122,036 thousand in 2021, it modestly increased to 127,370 thousand in 2022. Notably, EBT then nearly doubled in 2023 to 267,995 thousand, and saw another substantial increase in 2024, reaching 507,302 thousand. This indicates an improving earnings capacity before tax affecting growth positively in the latter years.
- Earnings Before Interest and Tax (EBIT)
- EBIT demonstrated a steady increase after the initial drop similar to EBT. From 143,903 thousand in 2020, EBIT dipped marginally to 123,066 thousand in 2021, then gradually rose to 131,384 thousand in 2022. It experienced a marked rise starting in 2023, climbing to 269,651 thousand, and further to 508,816 thousand in 2024, closely mirroring the EBT trend and indicating enhanced operational profitability over time, especially in recent years.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA shows consistent growth throughout the timeline. Starting at 172,535 thousand US dollars in 2020, it slightly decreased to 165,285 thousand in 2021 but rebounded to 185,809 thousand in 2022. Subsequently, there was substantial growth in 2023 and 2024, with EBITDA reaching 350,069 thousand and 596,306 thousand respectively. This increasing trend signifies improving cash profitability, reflecting enhanced earnings with reduced impact from non-cash charges and interest.
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) | 20,995,263) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 596,306) |
| Valuation Ratio | |
| EV/EBITDA | 35.21 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Alphabet Inc. | 21.55 |
| Charter Communications Inc. | 6.33 |
| Comcast Corp. | 5.56 |
| Meta Platforms Inc. | 21.44 |
| Netflix Inc. | 19.67 |
| Walt Disney Co. | 17.01 |
| EV/EBITDA, Sector | |
| Media & Entertainment | 18.31 |
| EV/EBITDA, Industry | |
| Communication Services | 15.52 |
Based on: 10-K (reporting date: 2024-12-31).
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, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Enterprise value (EV)1 | 33,826,652) | 35,637,119) | 31,093,109) | 38,269,025) | 42,178,716) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 596,306) | 350,069) | 185,809) | 165,285) | 172,535) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 56.73 | 101.80 | 167.34 | 231.53 | 244.46 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Alphabet Inc. | 16.81 | 17.01 | 14.66 | 18.08 | 20.84 | |
| Charter Communications Inc. | 6.94 | 7.11 | 7.68 | 9.97 | 11.53 | |
| Comcast Corp. | 5.84 | 7.10 | 9.60 | 8.45 | 10.36 | |
| Meta Platforms Inc. | 19.48 | 19.72 | 12.19 | 10.85 | 17.31 | |
| Netflix Inc. | 16.03 | 11.85 | 8.40 | 9.51 | 16.57 | |
| Walt Disney Co. | 16.57 | 17.34 | 17.80 | 34.53 | 60.13 | |
| EV/EBITDA, Sector | ||||||
| Media & Entertainment | 15.60 | 14.99 | 12.51 | 14.38 | 18.16 | |
| EV/EBITDA, Industry | ||||||
| Communication Services | 13.48 | 12.67 | 11.55 | 11.59 | 14.46 | |
Based on: 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).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 33,826,652 ÷ 596,306 = 56.73
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value demonstrates a general downward trend from 42,178,716 thousand US dollars at the end of 2020 to 33,826,652 thousand US dollars by the end of 2024. There is a slight dip in 2022 to approximately 31,093,109 thousand US dollars, followed by a moderate recovery in 2023, before declining again in 2024. This suggests a reduction in the market valuation or a shift in capital structure over the period, with some fluctuation in the middle years.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA figures indicate consistent growth throughout the five-year period, starting from 172,535 thousand US dollars in 2020 and reaching 596,306 thousand US dollars in 2024. The most notable growth occurs between 2022 and 2024, where EBITDA more than triples, signaling significant operational improvements or increased profitability in recent years.
- EV/EBITDA Ratio
- The EV/EBITDA ratio exhibits a marked decrease from an extremely high level of 244.46 in 2020 to 56.73 in 2024. This decline aligns with the combined trends of falling enterprise value and rising EBITDA, reflecting an improving valuation multiple. The sharp reduction in this ratio particularly from 2022 onward suggests the company is becoming more attractively valued relative to its earnings potential, potentially enhancing its appeal to investors.