Is The Trade Desk, Inc. overvalued or undervalued?

As of 17 October 2025, The Trade Desk, Inc. has moved from a fair to an expensive valuation grade. The company is currently overvalued, as indicated by its P/E ratio of 85, which is significantly higher than its peer average P/E of approximately 60.98. Additionally, the EV to EBITDA ratio stands at 61.64, again above the peer average of 41.76, and the Price to Book Value is 12.93, which suggests a premium valuation compared to its industry peers.
In comparison to its peers, The Trade Desk, Inc. shows a PEG ratio of 0.84, which is slightly more favorable than the peer average of 0.98, indicating potential growth relative to its price. However, the overall high valuation ratios suggest that the stock is not justified at its current price level. Furthermore, the company's recent performance has been poor, with a year-to-date return of -57.47%, contrasting sharply with the S&P 500's return of 13.30% during the same period, reinforcing the notion that The Trade Desk, Inc. is overvalued.