Is The Trade Desk, Inc. overvalued or undervalued?

As of 14 November 2025, the valuation grade for The Trade Desk, Inc. has moved from expensive to fair. The company appears to be fairly valued based on its current metrics, despite its high P/E ratio of 85 and an EV to EBITDA ratio of 61.64. Additionally, the PEG ratio stands at 0.84, suggesting that the stock may be undervalued relative to its growth potential.
In comparison to its peer, which has a P/E ratio of 60.98 and an EV to EBITDA of 41.76, The Trade Desk, Inc. is trading at a premium. The company's return performance has been significantly lagging, with a year-to-date return of -64.32% compared to the S&P 500's 14.49%, indicating a stark underperformance relative to the broader market.