The Trade Desk's Enterprise Value for the quarter that ended in Dec. 2023 was $34,038 Mil.
The Trade Desk's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 was $200 Mil. The Trade Desk's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2023 was 0.59%.
The historical rank and industry rank for The Trade Desk's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
TTD'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: -0.06 Med: 0.69 Max: 10.96
Current: 0.54
During the past 10 years, the highest Earnings Yield (Joel Greenblatt) of The Trade Desk was 10.96%. The lowest was -0.06%. And the median was 0.69%.
TTD's Earnings Yield (Joel Greenblatt) % is ranked worse than 53.64% of 2845
companies
in the Software industry
Industry Median: 1.23
vs TTD: 0.54
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. The Trade Desk's Forward Rate of Return (Yacktman) % for the quarter that ended in Dec. 2023 was 7.50%. The Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
The Trade Desk Earnings Yield (Joel Greenblatt) % Historical Data
The historical data trend for The Trade Desk's Earnings Yield (Joel Greenblatt) % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Application subindustry, The Trade Desk's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Trade Desk Earnings Yield (Joel Greenblatt) % Distribution
For the Software industry and Technology sector, The Trade Desk's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where The Trade Desk's Earnings Yield (Joel Greenblatt) % falls into.
The Trade Desk Earnings Yield (Joel Greenblatt) % Calculation
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
The Trade Desks Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2023 is calculated as
The Trade Desk's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $200 Mil.
The Trade Desk (NAS:TTD) Earnings Yield (Joel Greenblatt) % Explanation
Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.
Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.
Be Aware
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
The Trade Desk Earnings Yield (Joel Greenblatt) % Related Terms
Thank you for viewing the detailed overview of The Trade Desk's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.
The Trade Desk (The Trade Desk) Business Description
The Trade Desk provides a self-service platform that helps advertisers and ad agencies programmatically find and purchase digital ad inventory (display, video, audio, native, and social) on different devices like computers, smartphones, digital out of home, and connected TVs. It utilizes data to optimize the performance of ad impressions purchased. The firm's platform is referred to as a demand-side platform in the digital ad industry. The firm generates its revenue from fees based on a percentage of what its clients spend on advertising. The Trade Desk became a public company in 2016 and has since increased revenue at a 43% average annual rate. During that period, it has been profitable with operating margins of 10%-28%.
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