Trade Desk Inc. (NASDAQ:TTD)

Price to Earnings (P/E) Ratio

The P/E ratio exhibits significant volatility throughout the observed periods. Initially, it remains elevated, near 100 to 150 in early 2021, then notably peaks at 284.75 by the close of 2021. Following this peak, the ratio plunges and spikes dramatically to 788.4 in mid-2022 before missing data in one quarter. Subsequently, the ratio trends downward with some fluctuations, stabilizing around 200 in 2023 and early 2024. Noticeably toward the final intervals, the ratio declines sharply to approximately 50.61 by the first quarter of 2025, indicating a potential reduction in price relative to earnings or increased earnings relative to price.

Price to Operating Profit (P/OP) Ratio

This ratio mirrors the P/E trend closely, with initial high values in the 160-180 range in early 2021, escalating to over 300 at the end of 2021. It then decreases, with a noticeable peak of 669.01 in the second quarter of 2022, followed by missing data and a rebound to slightly below 300 at the year's end. The metric then declines gradually through 2023 and early 2024, settling near 170. Toward the last three quarters, the ratio diminishes substantially to a low of 42.06 by the first quarter of 2025. This suggests a similar pattern of valuation adjustments relative to operating profit.

Price to Sales (P/S) Ratio

The P/S ratio shows a less volatile but still notable change pattern. It starts around 26 in the first quarter of 2021, peaks near 38 in late 2021, then abruptly drops to mid-teens in early 2022. Beyond this, it fluctuates modestly between roughly 13 and 23 through 2023 and early 2024, with a pronounced rise to 28.32 in the third quarter of 2024 followed by a sharp decline to 7.95 by the first quarter of 2025. The overall trend suggests a decreasing valuation relative to sales over the longer term, with short-term volatility.

Price to Book Value (P/BV) Ratio

This ratio exhibits a downward trend with oscillations. Starting at about 21.5 in early 2021, it increases to near 33 in mid to late 2021, then declines markedly to around 10-15 in early 2022. It recovers somewhat, ranging between 15 and 20 during 2023 and early 2024, with a spike above 24 in the third quarter of 2024. Thereafter, the ratio falls sharply to 8.53 by the first quarter of 2025. The movement suggests fluctuating market perceptions of book value with a general tendency toward lower price multiples over time.

Overall Insights

All valuation multiples demonstrate considerable variability with peaks generally occurring around late 2021 to mid-2022, followed by declining trends moving into 2024 and 2025. The pronounced reductions in P/E, P/OP, P/S, and P/BV ratios in the latest periods suggest a market reassessment of the company's valuation metrics, potentially reflecting improved earnings and profits relative to prices or broader market sentiment adjustments. The data reveal a pattern of high initial valuation metrics followed by stabilization and gradual reduction, with occasional spikes indicating transient market optimism or valuation repricing events.

Share Price Trend

The share price exhibits significant volatility over the analyzed periods, with noticeable peaks and troughs. Initially, it increased from approximately $49 to nearly $89 within the first three quarters but declined sharply in early 2022 to below $40. Subsequently, there was a recovery reaching above $130 by the third quarter of 2024, followed by a steep decline again towards the end of the period, closing near $46. This pattern indicates cyclical fluctuations likely influenced by market conditions or company-specific developments.

Earnings Per Share (EPS) Trend

EPS shows a generally positive trend despite some fluctuations. Starting modestly around $0.51, EPS slightly increased initially, experienced a dip into negative territory around the third quarter of 2022, then consistently recovered and rose steadily from early 2023 onward. The upward trajectory culminates in an EPS nearing $0.91 in the final quarter under review, indicating improving profitability or operational efficiency over time.

Price-to-Earnings (P/E) Ratio Analysis

The P/E ratio is highly variable, reflecting the interplay between share price and earnings fluctuations. Initially very high, exceeding 150 and even reaching nearly 800 at one point, the ratio drops considerably in the last few quarters to below 60. This decrease suggests that earnings growth has outpaced share price appreciation recently, improving valuation attractiveness from a price-to-earnings perspective. The extremely high ratios in early periods likely reflect low or negative EPS combined with fluctuating share prices.

Overall Insights

The company’s financial metrics indicate phases of volatility and recovery. Share price fluctuations are sharp but ultimately show recovery periods. EPS trend suggests strengthening earnings capacity after a mid-period setback. The P/E ratio dynamics highlight initial investor caution or uncertainty, with valuation becoming more reasonable as earnings improve. These trends collectively suggest that, while subject to market and operational variability, the company’s financial health and investor perception have shown signs of stabilization and potential growth towards the end of the period.

The analyzed data shows the quarterly evolution of key financial metrics over several years, highlighting fluctuations in share price, operating profit per share, and the price-to-operating profit (P/OP) ratio.

Share Price Trends

The share price exhibited significant volatility across the periods. Initial quarters in 2021 saw a strong upward movement from $48.96 to a peak near $88.75, followed by a sharp decline around March 2022 to $43.75. Subsequently, the share price oscillated, reaching highs over $130 in late 2024 before declining again to $45.90 by September 2025. This pattern suggests periods of both optimistic market valuation and notable corrections.

Operating Profit per Share Movement

Operating profit per share experienced a generally upward trajectory overall, despite some intermittent drops. Starting at $0.30 in early 2021, it decreased temporarily into negative territory (-$0.02) by September 2022 but rebounded steadily afterward. By late 2025, it had increased to $1.09, indicating improved operational profitability over the medium to long term.

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

The P/OP ratio displayed substantial variation, often moving inversely to the operating profit per share. Early 2021 periods showed very high ratios exceeding 160, with a spike above 600 in mid-2022 when operating profit dropped sharply. As operating profit per share improved, the ratio declined significantly to values near 40 by late 2025, suggesting a market reassessment of relative valuation linked to earnings strength. Missing data in one quarter limits full continuity analysis but does not obscure the overarching trend of valuation compression concurrent with earnings growth.

Overall, the data reveals a cycle where share price volatility and operating profit fluctuations influenced the valuation multiples. The progression toward higher operating profits accompanied by a decreasing P/OP ratio toward the end of the period indicates enhanced market confidence in earnings quality, notwithstanding the pronounced interim swings in share price and profitability measures.

Share Price Trend

The share price exhibited significant volatility over the analyzed periods. Initially, it rose sharply from $48.96 to a peak of $88.75 within the first three quarters. This was followed by a decline to $39.89 by the third quarter of 2022. A recovery phase ensued, with the price reaching a high of $132.53 in the third quarter of 2024, after which it sharply declined again to $45.90 by the third quarter of 2025. Overall, the share price demonstrated cyclical behavior with notable peaks and troughs.

Sales Per Share

The sales per share showed a consistent upward trajectory throughout the entire period. Starting at $1.88, sales per share increased steadily each quarter, reaching $5.77 by the last reported quarter. This indicates a sustained growth in company revenue on a per-share basis, reflecting positive operational performance or market demand expansion over time.

Price-to-Sales (P/S) Ratio

The P/S ratio fluctuated considerably, reflecting changes in share price relative to sales per share. Initially, the ratio was quite high, peaking at 38.06, suggesting strong market valuation compared to sales. It then plunged to a low point of 7.95 by the end of the series, indicating a significant decrease in market valuation relative to sales. Notably, the P/S ratio tended to move inversely with share price declines and recoveries, highlighting periods where the market was either optimistic or cautious about future growth prospects despite steady sales increases.

Summary Insight

Overall, the company experienced steady growth in sales per share, signaling improving fundamental business performance. However, the share price and corresponding valuation metrics were highly volatile, possibly driven by external market conditions or investor sentiment shifts. The divergence between solid sales growth and fluctuating market valuations implies that factors beyond operational results influenced market perception and pricing of the stock over the period analyzed.

Share Price

The share price fluctuated significantly over the observed periods, exhibiting notable volatility. Initially, it increased sharply from approximately $49 to nearly $89 within the first three quarters, followed by a decline around March 2022 to about $44. Subsequently, fluctuations continued, with a peak above $132 occurring near the third quarter of 2024. However, this peak was followed by a steep decline, reaching approximately $46 by the third quarter of 2025. Overall, the share price displays a cyclical pattern with substantial upward and downward movements.

Book Value Per Share (BVPS)

The book value per share demonstrated a consistent upward trend throughout the period. Starting at $2.28, it gradually rose to about $5.38 by the last reported quarter. This steady increase suggests ongoing accumulation of net asset value, reflecting possible reinvested earnings or asset growth over time without significant setbacks.

Price-to-Book Value Ratio (P/BV)

The price-to-book value ratio showed considerable volatility, influenced by the fluctuating share price combined with the steadily increasing book value. Initially, the ratio was very high, above 20, peaking near 33 in late 2021. It then sharply decreased to levels near 8-12 during mid-2022 and mid-2025, corresponding to share price declines. Periods of higher ratio values correspond with spikes in share price, reaching nearly 25 in late 2024. This fluctuation signifies varying market perceptions of valuation relative to book value, possibly reflecting changing investor sentiment or market conditions.