Is The Trade Desk, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for The Trade Desk, Inc. has moved from fair to expensive, indicating that the company is overvalued. Key ratios highlight this valuation concern, with a P/E ratio of 85, an EV to EBITDA ratio of 61.64, and a Price to Book Value of 12.93. In comparison, a peer like The Trade Desk, Inc. has a lower P/E ratio of 60.98 and an EV to EBITDA of 41.76, further emphasizing the overvaluation.
The company's performance has been notably poor, with a year-to-date return of -57.22% compared to the S&P 500's positive return of 16.30%, and over the past three years, it has underperformed significantly with a return of -5.56% against the S&P 500's 76.66%. This stark contrast in returns reinforces the notion that The Trade Desk, Inc. is currently overvalued.