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 stock is overvalued. The company exhibits a P/E ratio of 85, a Price to Book Value of 12.93, and an EV to EBITDA of 61.64, all of which are significantly higher than its peers, such as the average P/E of 60.98 and an EV to EBITDA of 41.76 for comparable companies.
With a PEG ratio of 0.84, The Trade Desk appears to have some growth potential; however, the high valuation ratios suggest that the stock may not be a good investment at its current price of 47.24. The company's returns have notably lagged behind the S&P 500, with a year-to-date return of -59.81% compared to the index's 16.30%, reinforcing the perception of overvaluation.