Trade Desk Inc. (NASDAQ:TTD)

Price to Earnings (P/E) Ratio

The Price to Earnings ratio demonstrates significant volatility over the observed quarters. Initial data points are missing until March 31, 2020, after which the ratio starts at 176.64 and decreases to 96.69 by June 30, 2020. It then experiences a sharp increase peaking at 788.4 on September 30, 2022. Following this peak, the ratio declines overall, reaching values around 71.43 to 103.52 by mid to late 2025. This pattern indicates fluctuating investor sentiment possibly influenced by earnings variability or market conditions affecting the stock price.

Price to Operating Profit (P/OP) Ratio

The Price to Operating Profit ratio shows a somewhat similar pattern to the P/E ratio, initially unavailable but entering the data stream at 296.81 on March 31, 2020. It declines to approximately 164.94 in June 2020 before rising to a high of 669.01 in September 2022. Post this peak, there is a general downward trend, with the ratio falling below 100 by mid-2025. These fluctuations suggest changing investor evaluations of profitability relative to price, perhaps reflecting operational performance changes or broader market valuations.

Price to Sales (P/S) Ratio

The Price to Sales ratio begins with values unavailable for the early 2020 quarters but later shows a peak of 51.2 on March 31, 2020, which then drops sharply to 16.47 by June 30, 2022. The ratio remains relatively stable between approximately 11.46 and 28.32 for the latter periods, ending at 16.12 in June 2025. This indicates a general decline in the valuation of sales over time, shifting towards more moderate multiples, which may reflect either increasing sales or a normalization in valuation multiples.

Price to Book Value (P/BV) Ratio

The Price to Book Value ratio is present from the start and shows significant fluctuations. Initially, it rises from 21.56 on March 31, 2020, to a high of 46.21 on September 30, 2020. Afterward, the ratio exhibits a declining trend, reducing to approximately 10.2 by September 30, 2022. Subsequently, it oscillates moderately, ending towards 16.02 in June 2025. This trend suggests a revaluation relative to book value, with early high investor expectations moderating over time.

The analysis of the quarterly financial data over the observed periods reveals several notable trends in the share price, earnings per share (EPS), and price-to-earnings (P/E) ratio.

Share Price

The share price exhibited considerable volatility throughout the periods. Starting at $31.55 in March 2020, it experienced a significant increase, peaking near $90 in December 2020. Following this peak, the price showed sharp declines and partial recoveries, with notable lows around $39.89 in September 2022 and $43.75 in March 2022. The latter part of the timeline reflects a mixed pattern, with the share price rebounding to $132.53 in September 2024 before experiencing subsequent declines to $59.90 in June 2025, then recovering to $88.33 by June 2025. Overall, the share price demonstrates high fluctuations, likely reflecting market volatility and changing investor sentiment.

Earnings Per Share (EPS)

Data for EPS begins from December 2020, starting at $0.51 and showing a general upward trend despite some fluctuations. EPS declined prominently in early 2022, reaching a low of -$0.02 in December 2022, indicating a brief period of negative earnings. Subsequently, EPS resumed growth, rising steadily from $0.11 in March 2023 to $0.85 in March 2025. This suggests an improvement in profitability over the medium term, with earnings strengthening substantially after the earlier dip.

Price-to-Earnings Ratio (P/E)

P/E ratio values exhibit extreme volatility, largely influenced by fluctuations in both share price and EPS. Early periods show high ratios, such as 176.64 in December 2020 and 284.75 in March 2021, indicating elevated market expectations relative to earnings. The ratio reaches an extremely high value of 788.4 in September 2022, coinciding with the lowest EPS value and comparatively lower share price, which may reflect earnings weakness or market uncertainty. After this peak, the P/E ratio gradually declines but remains elevated, stabilizing around values between 71 and 212 toward the end of the timeline. This trend suggests that despite improving earnings, market valuation remains relatively high.

In summary, the share price has been subject to pronounced fluctuations, reflecting varying market conditions. Earnings performance shows initial weakness followed by consistent growth, contributing to a dynamic valuation environment. The P/E ratio's volatile nature underscores the sensitivity of market valuation to shifts in earnings and share price, highlighting periods of both investor optimism and caution.

The analyzed financial data reveals distinct trends in share price, operating profit per share, and the price-to-operating profit (P/OP) ratio over multiple quarters from 2020 to 2025.

Share Price (US$)

The share price exhibited significant volatility throughout the observed periods. Initially, there was a strong upward trajectory from 31.55 at the end of Q1 2020 to a peak of 90.34 by Q4 2020. This was followed by fluctuating values with some declines, notably dropping to 39.89 in Q3 2022, representing a substantial correction. Subsequently, the price rebounded sharply, reaching a high of 132.53 in Q3 2024 before declining again to values in the 59.90 to 88.33 range towards mid to late 2025. These swings indicate periods of investor optimism followed by corrections, reflecting possible changes in market sentiment or company performance expectations.

Operating Profit per Share (US$)

Operating profit per share data begins from Q1 2021 and shows an overall upward trend across the quarters. Starting at 0.30, it experienced some fluctuations, with a dip into negative territory (-0.02) in Q4 2022, which could signal operational challenges during that period. However, after this trough, the metric steadily increased, reaching 0.97 by Q2 2025. This steady recovery and growth imply improving operational efficiency or profitability over time, despite interim volatility.

Price-to-Operating Profit (P/OP) Ratio

The P/OP ratio demonstrated extreme variability, indicating fluctuating investor valuation relative to the company's operating profitability. Early ratios were very high, peaking at 669.01 in Q3 2022, corresponding with a low operating profit per share, thus inflating the ratio. Generally, as the operating profit per share improved, the P/OP ratio showed a downward trend, falling to 64.99 by Q2 2025, consistent with a more reasonable market valuation relative to earnings. However, uneven data points and missing values indicate some periods of instability or inconsistent market responses to earnings changes.

In summary, the share price experienced substantial cycles of growth and decline, with operating profit per share recovering and improving over time after initial challenges. The P/OP ratio's high volatility reflects a market sensitive to profitability fluctuations, but a gradual normalization in this ratio suggests increasing investor confidence in the company's operating performance toward the later periods analyzed.

The data demonstrates several key trends in the financial metrics over the quarters from March 2020 through June 2025. There is particular focus on the share price, sales per share, and the price-to-sales (P/S) ratio.

Share Price

The share price exhibits significant volatility across the entire period. Initially, it increased from $31.55 in March 2020 to a peak near $90.34 at the end of 2020. Subsequently, the price experienced fluctuations, with a noticeable dip in early 2022 (around $39.89 in September 2022) followed by periods of recovery and decline. In the later quarters, particularly by the end of 2024, the price reached a substantial high of $132.53 but then dropped sharply to around $59.9 by mid-2025. This pattern suggests a high level of market volatility and possible external influences affecting stock valuation.

Sales Per Share

Sales per share showed a consistent and steady upward trend throughout the observed quarters. Starting at $1.76 in March 2021, this figure increased continuously each quarter, reaching $5.48 by June 2025. The continuous growth in sales per share reflects expanding revenue generation on a per-share basis, indicating healthy operational performance and potential growth in the underlying business.

Price-to-Sales (P/S) Ratio

The P/S ratio illustrates a more complex pattern in relation to the volatility of share price and steady sales growth. Initially high at 51.2 in March 2021, the ratio generally declined through mid-2022, bottoming out at around 11.46 in June 2025, following a few intermediate rebounds. The fluctuations in the P/S ratio primarily reflect the sharp variations in share price relative to steadily increasing sales. The downward trend in this ratio indicates that the stock price growth did not consistently keep pace with sales growth after certain peaks, possibly reflecting investor revaluations of the company's future growth prospects or market conditions.

In summary, sales per share have steadily increased, suggesting robust operational growth. The share price varied widely, indicating periods of increased investor enthusiasm and corrections. Consequently, the P/S ratio has generally declined, highlighting a relative moderation in valuation multiples amid growing sales and fluctuating market sentiment.

The share price exhibited considerable volatility over the observed periods. Starting at $31.55 at the end of March 2020, the price experienced a notable increase, reaching a peak of $90.34 by December 2020. This growth was followed by fluctuations, with significant decreases and subsequent partial recoveries; for example, the share price dropped to $43.75 by March 2022 after previously reaching highs near $80 to $90. Another notable peak occurred at $132.53 in September 2024 before declining again to $59.90 by June 2025.

The book value per share (BVPS) showed a consistent upward trend throughout the periods. Beginning at $1.46 in March 2020, it gradually increased quarter over quarter, reaching $5.94 by March 2025. Some periods reflected slight decreases or stabilization, such as between March 2023 and December 2023, but overall, the BVPS nearly quadrupled during the observed timeframe, indicating compounded growth in the underlying net asset value per share.

The price-to-book value (P/BV) ratio demonstrated significant fluctuations correlated to the movements in share price relative to the steadily rising book value. Early in the series, the ratio climbed sharply from 21.56 in March 2020 to a high of 46.21 by September 2020, reflecting accelerated share price appreciation outpacing book value growth. Afterward, the ratio generally declined, with notable dips to levels near 10 in late 2022 and mid-2025, suggesting the share price was trading closer to the company's book value during these times. Intermittent increases in the P/BV ratio corresponded with share price surges that outstripped the growth in book value. This dynamic indicates periods where market valuations became more or less optimistic relative to the company's intrinsic net asset value.

Overall, the data illustrates a growing fundamental base, as evidenced by the increasing book value per share, combined with a volatile market perception reflected in the share price and P/BV ratio. Peaks in market valuation relative to book value were generally followed by corrections, suggesting variability in investor sentiment or external factors impacting share price independent of steady book value improvements.