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 high P/E ratio of 85, which significantly exceeds its peer average of approximately 60.98. Additionally, the EV to EBITDA ratio stands at 61.64, again higher than the peer average, and the PEG ratio is 0.84, suggesting that the stock may not be justified at its current price given its growth prospects.
In comparison to its peers, The Trade Desk, Inc. shows a notable discrepancy in valuation metrics, with its EV to EBIT at 73.85 versus the industry average. 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% over the same period, highlighting the challenges it faces in the current market environment.