Is The Trade Desk, Inc. overvalued or undervalued?

As of 10 September 2025, the valuation grade for The Trade Desk, Inc. moved from expensive to fair. Based on the current metrics, the company appears to be fairly valued. Key ratios include a P/E ratio of 85, an EV to EBITDA of 61.64, and a PEG ratio of 0.84, which suggests that while the stock is not cheap, it is not excessively overpriced relative to its growth prospects.
In comparison to its peers, The Trade Desk, Inc. has a P/E ratio of 60.98, which is lower than its current P/E, indicating that it may be more attractively priced than some competitors. Additionally, the company’s ROCE of 43.20% and ROE of 15.17% reflect strong profitability metrics. However, the stock has significantly underperformed against the S&P 500, with a year-to-date return of -62.62% compared to the S&P 500's 12.22%, highlighting the challenges the company faces in the current market environment.