Is The Trade Desk, Inc. overvalued or undervalued?

As of 14 November 2025, the valuation grade for The Trade Desk, Inc. moved from expensive to fair. The company appears to be fairly valued based on its current metrics. 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 a more favorable growth outlook relative to its price. In comparison, its peer, which has a P/E of approximately 60.98, indicates that The Trade Desk is priced higher than its industry counterpart.
Despite the fair valuation, The Trade Desk has underperformed relative to the S&P 500, with a year-to-date return of -64.32% compared to the S&P 500's 14.49%. This significant underperformance over multiple periods raises concerns about the company's growth prospects and market sentiment.