Explain this page
Arphra AIPlain-English read on The Trade Desk, Inc.’s valuationRatios & metrics
Profitability, returns on capital, growth, and credit — all derived from the historical income statement, balance sheet, and cash flow rows in our data warehouse.
Valuation multiples
Price- and EV-based multiples plus shareholder yields. Snapshot at each fiscal year-end from key_metrics (FMP).
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Headline | |||||||||
| Market cap | — | — | — | — | — | — | — | — | — |
| Enterprise value | — | — | — | — | — | — | — | — | — |
| Multiples | |||||||||
| P / E | — | — | — | — | — | — | — | — | — |
| P / B | — | — | — | — | — | — | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — | — |
| EV / Sales | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | — | — | — | — | — | — | — | — |
| Yields | |||||||||
| Earnings yield | — | — | — | — | — | — | — | — | — |
| Free cash flow yield | — | — | — | — | — | — | — | — | — |
| Dividend yield | — | — | — | — | — | — | — | — | — |
Profitability
Margin structure across the last 5 fiscal years
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Margins | |||||||||
| Gross margin | +81.48% | +82.18% | +81.21% | +80.69% | +78.63% | +81.20% | +82.11% | +81.54% | +81.39% |
| Operating margin | +10.43% | +7.20% | +10.30% | +17.47% | +20.35% | +16.28% | +16.31% | +16.15% | +15.56% |
| EBITDA margin | +13.96% | +10.65% | +14.43% | +21.05% | +26.74% | +20.34% | +20.28% | +20.60% | +20.76% |
| EBIT margin | +10.43% | +7.20% | +10.30% | +17.47% | +22.74% | +17.01% | +17.33% | +17.29% | +16.44% |
| Pre-tax margin | +10.20% | +8.07% | +13.77% | +20.75% | +22.74% | +19.29% | +19.02% | +19.02% | +18.90% |
| Net margin | +11.51% | +3.38% | +9.19% | +16.08% | +15.31% | +13.62% | +13.65% | +13.68% | +13.81% |
| Cost structure | |||||||||
| Cost of revenue / sales | +18.52% | +17.82% | +18.79% | +19.31% | +21.37% | +19.24% | +19.68% | +20.31% | +19.87% |
| R&D intensity | +18.90% | +20.27% | +21.16% | +18.95% | +18.13% | +19.00% | +19.24% | +19.61% | +18.93% |
| SG&A intensity | +52.15% | +54.71% | +49.75% | +44.27% | +40.15% | +44.46% | +44.71% | +43.47% | +44.02% |
| Effective tax rate | -12.89% | +58.09% | +33.23% | +22.52% | +32.71% | +29.26% | +29.65% | +29.64% | +30.04% |
Returns on capital
ROE / ROA / ROC / ROIC over the relevant capital base, plus the 3-step DuPont decomposition of ROE.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| Return on equity (ROE) | +9.02% | +2.52% | +8.27% | +13.33% | +17.84% | +12.84% | +12.72% | +13.10% | +12.84% |
| Return on assets (ROA) | +3.85% | +1.22% | +3.66% | +6.43% | +7.20% | +5.64% | +5.81% | +5.89% | +5.64% |
| Return on capital (ROC) | +6.89% | +4.78% | +8.35% | +13.10% | +20.18% | +13.62% | +13.50% | +13.70% | +12.85% |
| Return on invested capital (ROIC) | +7.60% | +2.25% | +7.46% | +12.05% | +15.18% | +11.39% | +11.30% | +11.60% | +11.40% |
| Asset turnover | +33.45% | +36.02% | +39.81% | +40.00% | +47.07% | +41.40% | +42.58% | +43.02% | +40.82% |
| DuPont · ROE decomposition | |||||||||
| Net margin | +11.51% | +3.38% | +9.19% | +16.08% | +15.31% | +13.62% | +13.65% | +13.68% | +13.81% |
| Asset turnover (× revenue / assets) | +33.45% | +36.02% | +39.81% | +40.00% | +47.07% | +41.40% | +42.58% | +43.02% | +40.82% |
| Equity multiplier (× assets / equity) | +234.23% | +207.09% | +225.89% | +207.24% | +247.68% | +227.71% | +218.86% | +222.50% | +227.89% |
Activity & efficiency
Turnover ratios and days-outstanding — how efficiently the business converts assets and working capital into sales and cash.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Turnover | |||||||||
| Asset turnover | 0.33 | 0.36 | 0.40 | 0.40 | 0.47 | 0.41 | 0.43 | 0.43 | 0.41 |
| Fixed-asset turnover | 3.23 | 4.00 | 5.42 | 5.17 | 3.92 | — | — | — | — |
| Inventory turnover | — | — | — | — | — | — | — | — | — |
| Receivables turnover | 0.59 | 0.67 | 0.68 | 0.73 | 0.73 | — | — | — | — |
| Payables turnover | 0.13 | 0.15 | 0.16 | 0.18 | 0.21 | — | — | — | — |
| Days outstanding | |||||||||
| Days sales outstanding (DSO) | 616.45 | 542.99 | 538.33 | 497.20 | 497.19 | — | — | — | — |
| Days inventory outstanding (DIO) | — | — | — | — | — | — | — | — | — |
| Days payables outstanding (DPO) | 2727.66 | 2429.78 | 2313.53 | 2034.68 | 1773.30 | — | — | — | — |
| Cash conversion cycle | -2111.21 | -1886.79 | -1775.19 | -1537.48 | -1276.11 | — | — | — | — |
Cash flow quality
How well reported earnings translate into operating and free cash flow, plus reinvestment intensity.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Operating CF / Net income | 2.75 | 10.28 | 3.34 | 1.88 | 2.24 | 2.29 | 2.39 | 2.26 | 2.32 |
| FCF / Net income | 2.31 | 8.56 | 3.04 | 1.61 | 1.79 | 2.04 | 2.04 | 1.97 | 1.98 |
| FCF margin | +26.62% | +28.95% | +27.92% | +25.87% | +27.47% | +27.77% | +27.88% | +26.89% | +27.27% |
| OCF margin | +31.64% | +34.78% | +30.74% | +30.25% | +34.28% | +31.25% | +32.60% | +30.91% | +32.01% |
| CapEx / Revenue | +5.01% | +5.82% | +2.83% | +4.38% | +6.80% | +4.75% | +4.64% | +4.81% | +4.69% |
| CapEx / D&A | 1.42 | 1.69 | 0.68 | 1.22 | 1.70 | — | — | — | — |
| Stock-based comp / Revenue | +28.20% | +31.60% | +25.26% | +20.23% | +16.94% | — | — | — | — |
Per-share & shareholder yield
EPS, book value, sales, cash flow and dividends per share — plus payout / retention.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| EPS · diluted | 0.28 | 0.11 | 0.36 | 0.78 | 0.91 | 1.00 | 1.20 | 1.42 | 1.87 |
| EPS · basic | 0.29 | 0.11 | 0.37 | 0.80 | 0.92 | 1.03 | 1.22 | 1.46 | 1.93 |
| Book value / share | 3.06 | 4.23 | 4.33 | 5.88 | 5.15 | 6.96 | 7.88 | 8.16 | 9.00 |
| Tangible BV / share | 3.03 | 4.19 | 4.29 | 5.85 | 5.11 | 6.96 | 7.88 | 8.16 | 9.00 |
| Sales / share | 2.40 | 3.16 | 3.89 | 4.87 | 6.00 | 6.56 | 7.34 | 7.81 | 8.38 |
| Operating CF / share | 0.76 | 1.10 | 1.20 | 1.47 | 2.06 | 2.05 | 2.39 | 2.41 | 2.68 |
| Free cash flow / share | 0.64 | 0.91 | 1.09 | 1.26 | 1.65 | 1.82 | 2.05 | 2.10 | 2.28 |
| Dividends / share | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Payout ratio | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Retention ratio | +100.00% | +100.00% | +100.00% | +100.00% | +100.00% | +100.00% | +100.00% | +100.00% | +100.00% |
Growth
Year-over-year change for headline P&L lines, plus through-cycle CAGR
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E | 8y CAGR |
|---|---|---|---|---|---|---|---|---|---|---|
| Top-line | ||||||||||
| Revenue · YoY | — | +31.87% | +23.34% | +25.63% | +18.47% | +10.02% | +10.26% | +7.57% | +6.44% | +16.37% |
| Gross profit · YoY | — | +33.00% | +21.89% | +24.82% | +15.43% | +13.62% | +11.49% | +6.82% | +6.24% | +16.35% |
| Profit | ||||||||||
| Operating income · YoY | — | -8.94% | +76.40% | +113.07% | +37.96% | -11.97% | +10.47% | +6.47% | +2.59% | +22.33% |
| EBITDA · YoY | — | +0.62% | +67.12% | +83.22% | +50.50% | -16.32% | +9.94% | +9.24% | +7.28% | +22.28% |
| Net income · YoY | — | -61.25% | +235.19% | +119.67% | +12.78% | -2.07% | +10.49% | +7.78% | +7.42% | +19.04% |
| Operating | ||||||||||
| EBIT · YoY | — | -8.94% | +76.40% | +113.07% | +54.21% | -17.74% | +12.35% | +7.30% | +1.21% | +23.17% |
| R&D · YoY | — | +41.45% | +28.74% | +12.51% | +13.34% | +15.30% | +11.65% | +9.63% | +2.76% | +16.39% |
| Per-share | ||||||||||
| EPS · diluted · YoY | — | -60.71% | +227.27% | +116.67% | +16.67% | +9.56% | +20.34% | +18.36% | +31.46% | +26.76% |
| EPS · basic · YoY | — | -62.07% | +236.36% | +116.22% | +15.00% | +12.26% | +17.93% | +19.69% | +32.41% | +26.74% |
Credit & leverage
Balance-sheet health + interest coverage + liquidity. Coverage ratios use period-end debt and trailing interest expense.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Leverage | |||||||||
| Total debt | $284.6M | $260.96M | $235.89M | $312.22M | $436.33M | $429.81M | $475.01M | $507.1M | $546.07M |
| Net debt | -$469.56M | -$769.55M | -$659.24M | -$1.06B | -$221.85M | -$857.57M | -$998.33M | -$1.09B | -$1.16B |
| Net debt / EBITDA | -2.81 | -4.58 | -2.35 | -2.05 | -0.29 | -1.32 | -1.40 | -1.40 | -1.39 |
| Debt / equity | 0.19 | 0.12 | 0.11 | 0.11 | 0.18 | 0.13 | 0.13 | 0.13 | 0.13 |
| Debt / assets | +7.96% | +5.96% | +4.83% | +5.11% | +7.09% | +5.58% | +5.76% | +5.77% | +5.54% |
| Equity / assets | +42.69% | +48.29% | +44.27% | +48.25% | +40.38% | +43.92% | +45.69% | +44.94% | +43.88% |
| Coverage | |||||||||
| EBITDA / interest expense | 162.17 | — | — | — | — | — | — | — | — |
| Operating income / interest | 121.18 | — | — | — | — | — | — | — | — |
| Interest expense | $1.03M | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Liquidity | |||||||||
| Current ratio | 1.71 | 1.90 | 1.72 | 1.86 | 1.61 | — | — | — | — |
| Quick ratio | 1.65 | 1.87 | 1.69 | 1.83 | 1.61 | — | — | — | — |
| Cash ratio | 0.42 | 0.51 | 0.36 | 0.48 | 0.20 | — | — | — | — |
| Working capital | $1.29B | $1.82B | $1.8B | $2.46B | $2B | — | — | — | — |
| Working capital / revenue | +107.68% | +115.12% | +92.65% | +100.74% | +68.88% | — | — | — | — |
Methodology. ROE / ROA / ROC use period-end balance-sheet denominators (no average-of- period smoothing). ROIC = Operating Income × (1 − inferred effective tax rate) over invested capital, with the effective tax inferred from net-to-operating income when both are positive and a 25% default otherwise. Net debt / EBITDA, debt ratios, and interest-coverage ratios are calculated point-in-time at each fiscal year-end. TTM = trailing 4 quarters (income / cash flow summed, balance sheet = most-recent quarterly snapshot). Through-cycle CAGR in the Growth panel uses the geometric mean of first-to-last period growth across the window (positive values only).