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Direct Digital Holdings (NAS:DRCT) Equity-to-Asset Explanation
Equity to Asset ratio can vary greatly across different industries, as they have different capital structure. A company with smaller Equity to Asset ratio (more leveraged) may have higher ROE % because of the leverage.
For banks, the required minimum Equity to Asset ratio by regulation is 5%. Some stronger banks may have Equity to Asset Ratio of more than 10%.
Direct Digital Holdings Equity-to-Asset Related Terms
Direct Digital Holdings Equity-to-Asset Historical Data
* 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.
DRCT vs BAOS, TGNT, HAO: Equity-to-Asset Comparison
For the Advertising Agencies subindustry, Direct Digital Holdings's Equity-to-Asset, along with its competitors' market caps and Equity-to-Asset 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.
Direct Digital Holdings Equity-to-Asset vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Direct Digital Holdings's Equity-to-Asset distribution charts can be found below:
* The bar in red indicates where Direct Digital Holdings's Equity-to-Asset falls into.
Direct Digital Holdings Equity-to-Asset Calculation
Equity to Asset ratio measures the ratios of the portion of the asset owned by shareholders out of the total asset. It indicates the leverage of the company, and the amount of debt the company uses in its operation.
Equity to Asset ratio is calculated by dividing total stockholders equity by total asset.
Direct Digital Holdings's Equity to Asset Ratio for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Direct Digital Holdings (DRCT) has a Equity-to-Asset of -0.24 as of Mar. 2026. Equity-to-asset ratio equals total company equity divided by total assets. It measures financial leverage. View historical data on Direct Digital Holdings and its competitors. According to the industry distribution chart, Direct Digital Holdings ranks #952 out of 1027 companies in the Media - Diversified industry, placing it in the top 92.7%.
Is Direct Digital Holdings' Equity-to-Asset too high?
Direct Digital Holdings' current Equity-to-Asset is -0.24. Based on the distribution chart, Direct Digital Holdings ranks #952 out of 1027 companies in the Media - Diversified industry, which is in the bottom quartile relative to peers. Overall, Direct Digital Holdings has a GF Score™ of 43/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Direct Digital Holdings' Equity-to-Asset compare to BAOS and TGNT?
According to the Media - Diversified industry distribution chart, Direct Digital Holdings ranks #952 out of 1027 companies for Equity-to-Asset. This places Direct Digital Holdings in the lower half of its industry. The industry median Equity-to-Asset is 0.51. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Equity-to-Asset for a Media - Diversified company?
The median Equity-to-Asset among Media - Diversified companies is 0.51, based on 1,027 companies in the industry. Companies in the top quartile (top 25%) have a Equity-to-Asset significantly above this median, while those in the bottom quartile fall well below. However, Equity-to-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Equity-to-Asset mean?
A high Equity-to-Asset can signal that a stock is expensive relative to its fundamentals. Equity-to-asset ratio equals total company equity divided by total assets. It measures financial leverage. View historical data on Direct Digital Holdings and its competitors. For the Media - Diversified industry, the median Equity-to-Asset is 0.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Direct Digital Holdings's current Equity-to-Asset is -0.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Direct Digital Holdings stock overvalued right now?
Based on GuruFocus' analysis, Direct Digital Holdings (DRCT) is currently considered Possible Value Trap. The stock's GF Value™ is $19.56, compared to a current price of $2.67 — trading 86.3% below its estimated fair value. The current Equity-to-Asset is -0.24. Direct Digital Holdings' overall GF Score™ is 43/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Equity-to-Asset calculated?
Equity-to-Asset is calculated from a company's financial statements. For Direct Digital Holdings (DRCT), the current Equity-to-Asset is -0.24 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Direct Digital Holdings (DRCT) Overvalued in 2026?
Based on GuruFocus' analysis, Direct Digital Holdings stock appears to be undervalued.
The current stock price of $2.67 is trading 86.3% below its estimated GF Value™ of $19.56.
GuruFocus considers Direct Digital Holdings to be Possible Value Trap.
Key valuation signals for DRCT:
Equity-to-Asset: -0.24
GF Value™: $19.56 vs. price of $2.67 (86.3% below fair value)
No single metric tells the full story. See the DRCT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Direct Digital Holdings Inc is an end-to-end, full-service programmatic advertising platform focused on providing advertising technology, data-driven campaign optimization, and other solutions to underserved and less efficient markets on both the buy-side and sell-side of the digital advertising ecosystem. The company operates two reportable segments: sell-side advertising, which includes the results of Colossus Media, and buy-side advertising, which includes the results of Orange 142 and Huddled Masses. All of the company's revenues are attributed to the United States.
43GF Score
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Equity-to-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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