Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
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Trade Desk Inc. pages available for free this week:
- Income Statement
- Statement of Comprehensive Income
- Analysis of Profitability Ratios
- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to EBITDA (EV/EBITDA)
- Dividend Discount Model (DDM)
- Return on Equity (ROE) since 2016
- Return on Assets (ROA) since 2016
- Debt to Equity since 2016
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Current Valuation Ratios
Trade Desk Inc., current price multiples
| Trade Desk Inc. | Alphabet Inc. | Charter Communications Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Walt Disney Co. | Media & Entertainment | Communication Services | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||
| Current share price (P) | ||||||||||||
| No. shares of common stock outstanding | ||||||||||||
| Growth rate (g) | ||||||||||||
| Earnings per share (EPS) | ||||||||||||
| Next year expected EPS | ||||||||||||
| Operating profit per share | ||||||||||||
| Sales per share | ||||||||||||
| Book value per share (BVPS) | ||||||||||||
| Valuation Ratios (Price Multiples) | ||||||||||||
| Price to earnings (P/E) | ||||||||||||
| Price to next year expected earnings | ||||||||||||
| Price-earnings-growth (PEG) | ||||||||||||
| Price to operating profit (P/OP) | ||||||||||||
| Price to sales (P/S) | ||||||||||||
| Price to book value (P/BV) | ||||||||||||
Based on: 10-K (reporting date: 2024-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Trade Desk Inc., historical price multiples
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Price to earnings (P/E) | ||||||
| Price to operating profit (P/OP) | ||||||
| Price to sales (P/S) | ||||||
| Price to book value (P/BV) |
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).
- Price to Earnings (P/E) Ratio
- The price to earnings ratio demonstrates a fluctuating but overall decreasing trend from 176.64 in 2020 to 90.94 in 2024. After a sharp increase peaking at 609.53 in 2022, the ratio declines significantly in subsequent years, suggesting a reduction in market valuation relative to earnings, or an improvement in earnings relative to stock price, moving towards a more moderate valuation level by 2024.
- Price to Operating Profit (P/OP) Ratio
- This ratio similarly shows a peak in the middle period, rising from 296.81 in 2020 to a high of 314.28 in 2021, followed by a steady decline to 83.69 by 2024. The reduction over these years signals improved operating profit relative to stock price or a correction in market expectations, indicating potential enhanced operational efficiency or profitability.
- Price to Sales (P/S) Ratio
- The price to sales ratio exhibits a consistent downward trend throughout the periods, declining from 51.2 in 2020 to 14.62 in 2024. This steady decrease implies that the market valuation relative to sales is becoming more conservative, which may reflect increased sales performance, market correction, or both. The sustained decline suggests improving sales metrics or a revaluation by investors.
- Price to Book Value (P/BV) Ratio
- The price to book value ratio falls from 42.25 in 2020 to 12.12 in 2024, with a slight uptick in 2023 to 17.1 before continuing downward. This general downward movement suggests the market valuation relative to the company's book value is becoming more restrained over time. The temporary increase in 2023 is notable but does not alter the overall declining trajectory, which may indicate improvements in the company's net asset position or more tempered market sentiment.
Price to Earnings (P/E)
Trade Desk Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net income (in thousands) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Alphabet Inc. | ||||||
| Charter Communications Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Walt Disney Co. | ||||||
| P/E Ratio, Sector | ||||||
| Media & Entertainment | ||||||
| P/E Ratio, Industry | ||||||
| Communication Services | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Trade Desk Inc. Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The financial data reveals evolving dynamics in valuation and profitability over the five-year period.
- Share Price
- The share price experienced a decline from 90.34 US$ at the end of 2020 to a low of 66.3 US$ in 2022. This was followed by a partial recovery to 75.71 US$ in 2023 before dipping slightly to 72.06 US$ in 2024. The overall trend indicates initial downward pressure with some stabilization and moderate recovery in the later years.
- Earnings per Share (EPS)
- The EPS exhibited a clear declining trend from 0.51 US$ in 2020 to a trough of 0.11 US$ in 2022, suggesting reduced profitability or increased costs during that period. From 2022 onwards, EPS showed a robust improvement, more than doubling to 0.37 US$ in 2023 and further rising to 0.79 US$ in 2024. This resurgence signifies enhanced earnings generation capacity.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio demonstrated significant volatility. Starting from a high valuation of 176.64 in 2020, it peaked dramatically at 609.53 in 2022, reflecting elevated market expectations despite diminishing earnings per share. Subsequently, the ratio adjusted downward to 206.87 in 2023 and further to 90.94 in 2024, indicating a market recalibration towards more moderate valuation multiples as earnings improved.
In summary, the period saw a phase of declining share price and earnings until 2022, accompanied by stretched valuation multiples. The latter years revealed a recovery in profitability and corresponding correction in market valuation, suggesting a more balanced investor sentiment based on strengthening fundamentals.
Price to Operating Profit (P/OP)
Trade Desk Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Income from operations (in thousands) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Alphabet Inc. | ||||||
| Charter Communications Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Walt Disney Co. | ||||||
| P/OP Ratio, Sector | ||||||
| Media & Entertainment | ||||||
| P/OP Ratio, Industry | ||||||
| Communication Services | ||||||
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).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Operating profit per share = Income from operations ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Trade Desk Inc. Annual Report.
4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
The analysis of the financial data over the five-year period reveals several important trends. The share price of the company showed a declining trend from 2020 to 2022, dropping from $90.34 to $66.30. It then experienced a partial recovery in 2023, rising to $75.71, but slightly declined again in 2024 to $72.06. This indicates volatility in the company's market valuation with no clear upward trajectory during this timeframe.
The operating profit per share exhibited a different pattern. It decreased modestly from $0.30 in 2020 to $0.23 in 2022, reflecting a reduction in profitability on a per-share basis during the initial years. However, from 2022 onwards, there was a significant increase in operating profit per share, reaching $0.41 in 2023 and further rising sharply to $0.86 in 2024. This suggests a strong improvement in operational efficiency or profitability in the later years.
The price-to-operating-profit (P/OP) ratio initially increased from 296.81 in 2020 to 314.28 in 2021, indicating that the share price was high relative to the operating profit per share. Following this peak, the ratio decreased steadily, falling to 286.30 in 2022, then more sharply to 184.64 in 2023, and finally to 83.69 in 2024. This decline in the P/OP ratio signifies that the market valuation of the company became more justified or attractive relative to its operating profit per share over time, especially from 2022 to 2024 when operating profits increased markedly.
In summary, while the share price showed volatility and an overall downward trend followed by slight recovery, the operating profit per share improved significantly after 2022. Correspondingly, the P/OP ratio decreased substantially, reflecting better alignment between market valuation and operational performance. This combination of a rising operating profit per share and a falling P/OP ratio suggests strengthening financial health and potentially enhanced investor confidence based on profitability metrics in the most recent years analyzed.
Price to Sales (P/S)
Trade Desk Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Revenue (in thousands) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Alphabet Inc. | ||||||
| Charter Communications Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Walt Disney Co. | ||||||
| P/S Ratio, Sector | ||||||
| Media & Entertainment | ||||||
| P/S Ratio, Industry | ||||||
| Communication Services | ||||||
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).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Trade Desk Inc. Annual Report.
4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
The analysis of the financial data over the observed five-year period reveals notable trends related to share price, sales per share, and the price-to-sales (P/S) ratio.
- Share Price
- The share price exhibited a general downward trend from 2020 to 2024. Starting at $90.34 in 2020, it decreased to $80.91 in 2021, then further dropped to $66.30 in 2022. Although there was a moderate recovery to $75.71 in 2023, the price again declined slightly to $72.06 in 2024. Overall, this reflects a decrease in market valuation over the period.
- Sales Per Share
- Sales per share consistently increased year over year, demonstrating strong revenue growth on a per-share basis. The figure rose from $1.76 in 2020 to $2.47 in 2021, then continued upward to $3.21 in 2022, $3.98 in 2023, and reached $4.93 by 2024. This steady increase suggests improving operational performance and enhanced sales efficiency.
- Price-to-Sales (P/S) Ratio
- The P/S ratio showed a significant decline throughout the period, starting from a high 51.2 in 2020 and falling sharply to 32.79 in 2021, down further to 20.62 in 2022, then 19.02 in 2023, and finally reaching 14.62 in 2024. This decline indicates that despite sales growth, the market valuation relative to sales has compressed, possibly reflecting changing market expectations or valuation adjustments.
In summary, while sales per share grew robustly every year, the share price experienced an overall decline after an initial drop, and the P/S ratio steadily decreased each year. This suggests that although the company's revenue generation per share improved substantially, investor valuation multiples contracted over the same timeframe.
Price to Book Value (P/BV)
Trade Desk Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (in thousands) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Alphabet Inc. | ||||||
| Charter Communications Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Walt Disney Co. | ||||||
| P/BV Ratio, Sector | ||||||
| Media & Entertainment | ||||||
| P/BV Ratio, Industry | ||||||
| Communication Services | ||||||
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).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Trade Desk Inc. Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The data reveals several notable trends in key financial metrics over the five-year period ending December 31, 2024.
- Share Price
- The share price exhibits an overall declining trend from 90.34 US$ in 2020 to 72.06 US$ in 2024. After a notable decrease from 90.34 US$ in 2020 to 66.3 US$ in 2022, there is a partial recovery in 2023 to 75.71 US$, followed by a slight decrease again to 72.06 US$ in 2024. This suggests fluctuating market sentiment and possibly external influences impacting valuation.
- Book Value per Share (BVPS)
- The book value per share shows a consistent upward trajectory throughout the period. It increases steadily from 2.14 US$ in 2020 to 5.94 US$ in 2024, reflecting growing net asset value on a per-share basis. This indicates strengthening fundamentals and potential accumulation of equity capital or retained earnings over time.
- Price-to-Book Value Ratio (P/BV)
- The P/BV ratio declines markedly from a very high 42.25 in 2020 to 12.12 by the end of 2024. This decrease is largely driven by the combination of the declining share price and the steadily rising BVPS. The falling P/BV ratio suggests a correction in market valuation relative to book value, potentially indicating that shares are becoming less overvalued or more reasonably priced as compared to the book value of equity.
In summary, while the share price has weakened over the interval, the company’s book value per share consistently strengthens, leading to a significant compression in the price-to-book ratio. This dynamic may signal an improvement in underlying financial health, although market valuation has adjusted downwards, possibly reflecting changing investor perceptions or broader market conditions.