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).
Current Valuation Ratios
Trade Desk Inc., current price multiples
| Trade Desk Inc. | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Walt Disney Co. | Media & Entertainment | Communication Services | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||
| Current share price (P) | $21.97 | ||||||||||
| No. shares of common stock outstanding | 475,977,047 | ||||||||||
| Growth rate (g) | 9.78% | ||||||||||
| Earnings per share (EPS) | $0.93 | ||||||||||
| Next year expected EPS | $1.02 | ||||||||||
| Operating profit per share | $1.24 | ||||||||||
| Sales per share | $6.08 | ||||||||||
| Book value per share (BVPS) | $5.22 | ||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||
| Price to earnings (P/E) | 23.59 | 26.51 | 5.17 | 24.89 | 35.48 | 13.70 | 24.03 | 22.09 | |||
| Price to next year expected earnings | 21.49 | 20.72 | 4.64 | 19.64 | 26.99 | 13.48 | 19.73 | 18.91 | |||
| Price-earnings-growth (PEG) | 2.41 | 0.95 | 0.46 | 0.93 | 1.13 | 8.33 | 1.10 | 1.31 | |||
| Price to operating profit (P/OP) | 17.74 | 27.15 | 5.00 | 18.07 | 29.24 | 13.06 | 21.86 | 19.08 | |||
| Price to sales (P/S) | 3.61 | 8.70 | 0.84 | 7.49 | 8.62 | 1.80 | 6.53 | 5.18 | |||
| Price to book value (P/BV) | 4.21 | 8.44 | 1.07 | 6.93 | 14.64 | 1.55 | 6.54 | 5.54 | |||
Based on: 10-K (reporting date: 2025-12-31).
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
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 valuation ratios demonstrate a consistent decline across the observed period. All four ratios – Price to Earnings (P/E), Price to Operating Profit (P/OP), Price to Sales (P/S), and Price to Book Value (P/BV) – exhibit decreasing values from 2021 to 2025, suggesting a decreasing premium investors are willing to pay for each dollar of earnings, operating profit, sales, and book value, respectively.
- Price to Earnings (P/E)
- The P/E ratio experienced a substantial decrease, moving from 284.75 in 2021 to 25.58 in 2025. This represents a significant contraction in valuation based on earnings. The most dramatic decline occurred between 2022 and 2024, indicating a rapid reassessment of the company’s earnings potential during that timeframe.
- Price to Operating Profit (P/OP)
- Similar to the P/E ratio, the P/OP ratio also shows a marked downward trend, decreasing from 314.28 in 2021 to 19.24 in 2025. This suggests that the market’s valuation of the company’s operational profitability has decreased considerably. The rate of decline appears to moderate slightly in the later years, but the overall trend remains strongly negative.
- Price to Sales (P/S)
- The P/S ratio decreased from 32.79 in 2021 to 3.91 in 2025. This indicates a substantial reduction in the price investors are willing to pay for each dollar of revenue. The decline is relatively consistent year-over-year, suggesting a steady erosion of revenue multiple.
- Price to Book Value (P/BV)
- The P/BV ratio decreased from 25.68 in 2021 to 4.56 in 2025. This signifies a significant decrease in the market’s valuation of the company’s net assets. The ratio’s decline suggests a diminishing belief in the company’s ability to generate returns from its asset base.
Collectively, these ratios indicate a substantial shift in investor sentiment. The consistent declines across all observed metrics suggest a decreasing market valuation of the company, potentially driven by factors such as changing growth expectations, increased competition, or broader macroeconomic conditions. The magnitude of the changes is particularly noteworthy, especially in the earlier years of the period.
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Price to Earnings (P/E)
Trade Desk Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 475,977,047 | 496,088,557 | 488,936,831 | 490,794,798 | 484,832,580 | |
| Selected Financial Data (US$) | ||||||
| Net income (in thousands) | 443,304) | 393,076) | 178,940) | 53,385) | 137,762) | |
| Earnings per share (EPS)2 | 0.93 | 0.79 | 0.37 | 0.11 | 0.28 | |
| Share price1, 3 | 23.82 | 72.06 | 75.71 | 66.30 | 80.91 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 25.58 | 90.94 | 206.87 | 609.53 | 284.75 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Alphabet Inc. | 30.33 | 23.54 | 23.89 | 22.47 | 25.74 | |
| Comcast Corp. | 5.35 | 7.86 | 12.01 | 31.38 | 16.01 | |
| Meta Platforms Inc. | 30.89 | 27.91 | 30.97 | 21.10 | 16.44 | |
| Netflix Inc. | 33.11 | 47.72 | 45.64 | 36.18 | 33.56 | |
| Walt Disney Co. | 15.49 | 39.74 | 73.44 | 54.90 | 137.89 | |
| P/E Ratio, Sector | ||||||
| Media & Entertainment | 27.70 | 25.28 | 26.54 | 24.66 | 24.24 | |
| P/E Ratio, Industry | ||||||
| Communication Services | 25.05 | 23.64 | 24.04 | 25.67 | 21.27 | |
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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 443,304,000 ÷ 475,977,047 = 0.93
3 Closing price as at the filing date of Trade Desk Inc. Annual Report.
4 2025 Calculation
P/E ratio = Share price ÷ EPS
= 23.82 ÷ 0.93 = 25.58
5 Click competitor name to see calculations.
The price to earnings (P/E) ratio exhibits significant fluctuation over the observed period. Initially high, the ratio demonstrates a decreasing trend, though with intermittent increases, culminating in a substantially lower value by the final year.
- P/E Ratio Trend
- The P/E ratio began at 284.75 in 2021, increased sharply to 609.53 in 2022, then decreased to 206.87 in 2023. A further decline to 90.94 was noted in 2024, followed by a dramatic reduction to 25.58 in 2025. This represents a considerable contraction in the multiple over the five-year period.
- Share Price and EPS Relationship
- The share price experienced a decrease from 2021 to 2022, followed by a recovery in 2023. It then declined again in 2024, and experienced a substantial drop in 2025. Earnings per share (EPS) showed an initial decrease from 2021 to 2022, followed by an increasing trend through 2025. The significant decrease in the P/E ratio in 2025 coincides with a continued increase in EPS, suggesting a disproportionate decline in share price relative to earnings.
The substantial changes in the P/E ratio suggest shifts in investor sentiment or expectations regarding future growth. The initial high values may indicate optimistic growth prospects, while the subsequent decline could reflect increased risk perception or a reassessment of the company’s future earnings potential. The final year’s low P/E ratio, coupled with increasing EPS, could indicate the stock is undervalued relative to its earnings, or that market expectations for future growth remain subdued despite improved current profitability.
- Key Observations
- The most pronounced change is the decrease in the P/E ratio from 2022 to 2025. This decrease is not solely attributable to changes in EPS; the share price also plays a significant role, particularly in the final year. The volatility in the P/E ratio suggests a dynamic valuation influenced by both earnings performance and market perception.
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Price to Operating Profit (P/OP)
Trade Desk Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 475,977,047 | 496,088,557 | 488,936,831 | 490,794,798 | 484,832,580 | |
| Selected Financial Data (US$) | ||||||
| Income from operations (in thousands) | 589,321) | 427,167) | 200,480) | 113,654) | 124,817) | |
| Operating profit per share2 | 1.24 | 0.86 | 0.41 | 0.23 | 0.26 | |
| Share price1, 3 | 23.82 | 72.06 | 75.71 | 66.30 | 80.91 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 19.24 | 83.69 | 184.64 | 286.30 | 314.28 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Alphabet Inc. | 31.06 | 20.97 | 20.92 | 18.01 | 24.86 | |
| Comcast Corp. | 5.18 | 5.46 | 7.93 | 12.00 | 10.89 | |
| Meta Platforms Inc. | 22.43 | 25.09 | 25.90 | 16.91 | 13.84 | |
| Netflix Inc. | 27.28 | 39.91 | 35.50 | 28.85 | 27.71 | |
| Walt Disney Co. | 14.76 | 23.75 | 33.90 | 26.43 | 91.54 | |
| P/OP Ratio, Sector | ||||||
| Media & Entertainment | 25.20 | 21.73 | 21.70 | 18.24 | 21.31 | |
| P/OP Ratio, Industry | ||||||
| Communication Services | 21.64 | 18.94 | 18.02 | 17.59 | 17.72 | |
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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Operating profit per share = Income from operations ÷ No. shares of common stock outstanding
= 589,321,000 ÷ 475,977,047 = 1.24
3 Closing price as at the filing date of Trade Desk Inc. Annual Report.
4 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 23.82 ÷ 1.24 = 19.24
5 Click competitor name to see calculations.
The Price to Operating Profit (P/OP) ratio exhibited a significant declining trend over the observed period. Initially high, the ratio decreased substantially from 2021 to 2025, coinciding with changes in both share price and operating profit per share.
- Overall Trend
- A consistent downward trend in the P/OP ratio is apparent. The ratio decreased from 314.28 in 2021 to 19.24 in 2025, representing a substantial contraction in valuation relative to operating profit.
- 2021-2022
- From 2021 to 2022, the P/OP ratio experienced a modest decrease, moving from 314.28 to 286.30. This slight reduction was driven by a decrease in operating profit per share, which outweighed the decline in share price.
- 2022-2023
- A more pronounced decrease in the P/OP ratio occurred between 2022 and 2023, falling to 184.64. This change was primarily attributable to an increase in operating profit per share, while the share price remained relatively stable.
- 2023-2024
- The P/OP ratio continued its downward trajectory, decreasing to 83.69 in 2024. This substantial reduction was the result of a significant increase in operating profit per share, coupled with a slight decrease in share price.
- 2024-2025
- The most dramatic decrease in the P/OP ratio occurred from 2024 to 2025, plummeting to 19.24. This was driven by a combination of a substantial decline in share price and a continued increase in operating profit per share. The share price decrease had a more significant impact on the ratio during this period.
The observed trend suggests a decreasing investor willingness to pay for each dollar of operating profit generated by the company. This could be due to various factors, including changing market conditions, investor sentiment, or concerns about future growth prospects.
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Price to Sales (P/S)
Trade Desk Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 475,977,047 | 496,088,557 | 488,936,831 | 490,794,798 | 484,832,580 | |
| Selected Financial Data (US$) | ||||||
| Revenue (in thousands) | 2,896,284) | 2,444,831) | 1,946,120) | 1,577,795) | 1,196,467) | |
| Sales per share2 | 6.08 | 4.93 | 3.98 | 3.21 | 2.47 | |
| Share price1, 3 | 23.82 | 72.06 | 75.71 | 66.30 | 80.91 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 3.91 | 14.62 | 19.02 | 20.62 | 32.79 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Alphabet Inc. | 9.95 | 6.73 | 5.74 | 4.76 | 7.60 | |
| Comcast Corp. | 0.87 | 1.03 | 1.52 | 1.39 | 1.95 | |
| Meta Platforms Inc. | 9.29 | 10.58 | 8.98 | 4.20 | 5.49 | |
| Netflix Inc. | 8.05 | 10.66 | 7.32 | 5.14 | 5.78 | |
| Walt Disney Co. | 2.03 | 2.16 | 1.94 | 2.09 | 4.08 | |
| P/S Ratio, Sector | ||||||
| Media & Entertainment | 7.53 | 6.32 | 5.25 | 3.73 | 5.62 | |
| P/S Ratio, Industry | ||||||
| Communication Services | 5.87 | 4.95 | 4.00 | 2.93 | 3.98 | |
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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= 2,896,284,000 ÷ 475,977,047 = 6.08
3 Closing price as at the filing date of Trade Desk Inc. Annual Report.
4 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= 23.82 ÷ 6.08 = 3.91
5 Click competitor name to see calculations.
The price-to-sales ratio exhibited a significant declining trend over the observed period. Initially high, the ratio decreased substantially before stabilizing at a lower level. This movement is closely correlated with changes in both share price and sales per share.
- Price-to-Sales Ratio (P/S)
- The P/S ratio began at 32.79 in 2021. A considerable decrease was noted in 2022, falling to 20.62. This downward trend continued, albeit at a slower pace, reaching 19.02 in 2023 and 14.62 in 2024. By 2025, the ratio experienced a dramatic reduction, concluding the period at 3.91.
- Share Price
- The share price demonstrated volatility. It decreased from US$80.91 in 2021 to US$66.30 in 2022, then recovered to US$75.71 in 2023. A slight decline to US$72.06 was observed in 2024, followed by a substantial drop to US$23.82 in 2025.
- Sales per Share
- Sales per share consistently increased throughout the period. Starting at US$2.47 in 2021, it rose to US$3.21 in 2022, US$3.98 in 2023, US$4.93 in 2024, and reached US$6.08 in 2025. This consistent growth in sales per share partially offset the impact of the declining share price on the P/S ratio, but was insufficient to prevent the overall downward trend.
The most pronounced change occurred between 2024 and 2025, with a significant decrease in both share price and, consequently, the P/S ratio. Despite continued growth in sales per share, the substantial decline in share price drove the P/S ratio to its lowest point during the analyzed timeframe.
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Price to Book Value (P/BV)
Trade Desk Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 475,977,047 | 496,088,557 | 488,936,831 | 490,794,798 | 484,832,580 | |
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (in thousands) | 2,484,391) | 2,949,145) | 2,164,219) | 2,115,339) | 1,527,306) | |
| Book value per share (BVPS)2 | 5.22 | 5.94 | 4.43 | 4.31 | 3.15 | |
| Share price1, 3 | 23.82 | 72.06 | 75.71 | 66.30 | 80.91 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 4.56 | 12.12 | 17.10 | 15.38 | 25.68 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Alphabet Inc. | 9.65 | 7.25 | 6.22 | 5.26 | 7.78 | |
| Comcast Corp. | 1.10 | 1.49 | 2.24 | 2.08 | 2.36 | |
| Meta Platforms Inc. | 8.60 | 9.53 | 7.91 | 3.89 | 5.18 | |
| Netflix Inc. | 13.66 | 16.80 | 11.99 | 7.82 | 10.83 | |
| Walt Disney Co. | 1.75 | 1.96 | 1.74 | 1.82 | 3.11 | |
| P/BV Ratio, Sector | ||||||
| Media & Entertainment | 7.54 | 6.75 | 5.64 | 4.09 | 5.73 | |
| P/BV Ratio, Industry | ||||||
| Communication Services | 6.28 | 5.56 | 4.54 | 3.41 | 4.32 | |
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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 2,484,391,000 ÷ 475,977,047 = 5.22
3 Closing price as at the filing date of Trade Desk Inc. Annual Report.
4 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= 23.82 ÷ 5.22 = 4.56
5 Click competitor name to see calculations.
The price-to-book value ratio exhibited a fluctuating pattern over the five-year period. Initially, a substantial decrease was observed, followed by a period of relative stability, and culminating in a significant decline in the most recent year.
- Overall Trend
- The price-to-book value ratio began at 25.68 in 2021, decreased to 15.38 in 2022, and then rose to 17.10 in 2023. A further decrease to 12.12 was noted in 2024, before a dramatic drop to 4.56 in 2025. This indicates increasing investor skepticism regarding the relationship between market price and net asset value over time.
- Initial Decline (2021-2022)
- A considerable reduction in the price-to-book value ratio occurred between 2021 and 2022, falling from 25.68 to 15.38. This suggests a significant adjustment in market valuation relative to the company’s book value during this period. The share price decreased more rapidly than the book value per share.
- Stabilization and Subsequent Decline (2022-2025)
- Following the initial decline, the ratio experienced a modest increase in 2023 before decreasing again in 2024. However, the most pronounced change occurred between 2024 and 2025, with the ratio falling from 12.12 to 4.56. This final decrease is largely attributable to a substantial decline in the share price, while the book value per share experienced a smaller decrease.
- Book Value per Share
- The book value per share generally increased from 3.15 in 2021 to 5.94 in 2024, before decreasing slightly to 5.22 in 2025. This indicates a consistent growth in net asset value per share for the majority of the period, although the growth rate slowed and ultimately reversed in the final year.
- Share Price
- The share price demonstrated volatility, decreasing from 80.91 in 2021 to 66.30 in 2022, increasing to 75.71 in 2023, decreasing to 72.06 in 2024, and then experiencing a substantial decline to 23.82 in 2025. The significant drop in 2025 is the primary driver of the overall decline in the price-to-book value ratio.
The observed trends suggest a growing disconnect between market perception and the underlying net asset value of the company, particularly evident in the final year of the period.
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