GURUFOCUS.COM » STOCK LIST » Technology » Software » The Trade Desk Inc (NAS:TTD) » Definitions » PEG Ratio

The Trade Desk (The Trade Desk) PEG Ratio : 8.14 (As of Apr. 28, 2024)


View and export this data going back to 2016. Start your Free Trial

What is The Trade Desk PEG Ratio?

PE Ratio without NRI / 5-Year EBITDA Growth Rate*

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, The Trade Desk's PE Ratio without NRI is 107.39. The Trade Desk's 5-Year EBITDA growth rate is 13.20%. Therefore, The Trade Desk's PEG Ratio for today is 8.14.

* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


The historical rank and industry rank for The Trade Desk's PEG Ratio or its related term are showing as below:

TTD' s PEG Ratio Range Over the Past 10 Years
Min: 3.28   Med: 9.19   Max: 65.43
Current: 8.14


During the past 10 years, The Trade Desk's highest PEG Ratio was 65.43. The lowest was 3.28. And the median was 9.19.


TTD's PEG Ratio is ranked worse than
88.55% of 777 companies
in the Software industry
Industry Median: 1.62 vs TTD: 8.14

Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.


The Trade Desk PEG Ratio Historical Data

The historical data trend for The Trade Desk's PEG Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

The Trade Desk PEG Ratio Chart

The Trade Desk Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PEG Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 4.75 14.98 100.02 30.20

The Trade Desk Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
PEG Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 100.02 52.14 30.86 22.83 30.20

Competitive Comparison of The Trade Desk's PEG Ratio

For the Software - Application subindustry, The Trade Desk's PEG Ratio, along with its competitors' market caps and PEG Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


The Trade Desk's PEG Ratio Distribution in the Software Industry

For the Software industry and Technology sector, The Trade Desk's PEG Ratio distribution charts can be found below:

* The bar in red indicates where The Trade Desk's PEG Ratio falls into.



The Trade Desk PEG Ratio Calculation

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The ratio we use is the 5-Year EBITDA growth rate.

The Trade Desk's PEG Ratio for today is calculated as

PEG Ratio=PE Ratio without NRI/5-Year EBITDA Growth Rate*
=107.38910012674/13.20
=8.14

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


The Trade Desk  (NAS:TTD) PEG Ratio Explanation

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.


The Trade Desk PEG Ratio Related Terms

Thank you for viewing the detailed overview of The Trade Desk's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


The Trade Desk (The Trade Desk) Business Description

Traded in Other Exchanges
Address
42 N. Chestnut Street, Ventura, CA, USA, 93001
The Trade Desk provides a self-service platform that helps advertisers and ad agencies programmatically find and purchase digital ad inventory (display, video, audio, native, and social) on different devices like computers, smartphones, digital out of home, and connected TVs. It utilizes data to optimize the performance of ad impressions purchased. The firm's platform is referred to as a demand-side platform in the digital ad industry. The firm generates its revenue from fees based on a percentage of what its clients spend on advertising. The Trade Desk became a public company in 2016 and has since increased revenue at a 43% average annual rate. During that period, it has been profitable with operating margins of 10%-28%.
Executives
Gokul Rajaram director 301 CONGRESS AVENUE, SUITE 700, AUSTIN TX 78701
Jay R Grant officer: Chief Legal Officer 225 E. 79TH STREET, APT 12E, NEW YORK NY 10075
Laura Schenkein officer: Chief Financial Officer C/O THE TRADE DESK, INC., 42 NORTH CHESTNUT STREET, VENTURA CA 93001
Jeffrey Terry Green director, 10 percent owner, officer: President and CEO 42 N. CHESTNUT STREET, VENTURA CA 93001
Andrea Lee Cunningham director C/O TRADE DESK, INC., 42 N. CHESTNUT STREET, VENTURA CA 93001
David B Wells director C/O NETFLIX, INC., 100 WINCHESTER CIRCLE, LOS GATOS CA 95130
Lise J Buyer director 1600 AMPHITHEATRE PARKWAY, MOUNTAIN VIEW CA 94043
David Randall Pickles officer: Chief Technology Officer 42 N. CHESTNUT STREET, VENTURA CA 93001
Blake Jeffrey Grayson officer: Chief Financial Officer 2212 EVERETT AVENUE E, SEATTLE WA 98102
Eric B Paley director, 10 percent owner C/O THE TRADE DESK, INC., 42 N. CHESTNUT ST., VENTURA CA 93001
Kathryn E Falberg director C/O AXOVANT SCIENCES, INC., 320 WEST 37TH STREET, 5TH FLOOR, NEW YORK NY 10018
Susan Vobejda officer: Chief Marketing Officer 130 EAST RANDOLPH STREET, 7TH FLOOR, CHICAGO IL 60601
Michelle Hulst officer: Chief Operating Officer 130 MERCHANT STREET, HONOLULU HI 96813
Brian John Stempeck officer: Chief Client Officer 42 N. CHESTNUT STREET, VENTURA CA 93001
Vivian Yang officer: Chief Legal Officer C/O VIANT TECHNOLOGY INC., 2722 MICHELSON DRIVE, SUITE 100, IRVINE CA 92612