The Trade DeskCHIX:TT8D 71 Gross Margin % is 73.58% as of Mar. 2026, which is 7% below its 10-year median of 79.49. GuruFocus rates CHIX:TT8D with a GF Score™ of 71/100 and a GF Value™ of €123.28 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 953 Media - Diversified companies, The Trade Desk ranks better than 86.57% on this metric.
The historical rank and industry rank for The Trade Desk's Gross Margin % or its related term are showing as below:
CHIX:TT8d'
s Gross Margin % Range Over the Past 10 Years
Min: 76.09 Med: 79.49 Max: 82.18
Current: 77.83
During the past 12 years, the highestGross Margin % of The Trade Desk was 82.18%. The lowest was 76.09%. And the median was 79.49%.
CHIX:TT8d's Gross Margin % is ranked better than 86.57% of 953
companies
in the Media - Diversified industry
Industry Median: 38.9
vs CHIX:TT8d: 77.83
The Trade Desk had a gross margin of 73.58% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for The Trade Desk was -0.10% per year.
The Trade Desk (CHIX:TT8d) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
The Trade Desk had a gross margin of 73.58% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
The Trade Desk Gross Margin % Related Terms
The Trade Desk Gross Margin % Historical Data
* Premium members only.
The historical data trend for The Trade Desk's Gross Margin % 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.
CHIX:TT8D vs MGNI, STGW, ZD: Gross Margin % Comparison
For the Advertising Agencies subindustry, The Trade Desk's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, The Trade Desk's Gross Margin % distribution charts can be found below:
* The bar in red indicates where The Trade Desk's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
The Trade Desk (CHIX:TT8D) has a Gross Margin % of 73.58% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on The Trade Desk and its competitors. This is near median its historical median of 79.49. Over the past decade, The Trade Desk's Gross Margin % has ranged from 76.09 to 82.18. According to the industry distribution chart, The Trade Desk ranks #128 out of 953 companies in the Media - Diversified industry, placing it in the top 13.4%.
Is The Trade Desk's Gross Margin % too high?
The Trade Desk's current Gross Margin % of 73.58% is near median its 10-year median of 79.49. Over the past 10 years, this metric has ranged from a low of 76.09 to a high of 82.18. The Media - Diversified industry median Gross Margin % is 38.90. The Trade Desk's value of 73.58% is 89.2% above this industry median. Based on the distribution chart, The Trade Desk ranks #128 out of 953 companies in the Media - Diversified industry, which is in the top quartile — a strong position relative to peers. Overall, The Trade Desk has a GF Score™ of 71/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Trade Desk's Gross Margin % compare to MGNI and STGW?
According to the Media - Diversified industry distribution chart, The Trade Desk ranks #128 out of 953 companies for Gross Margin %. This places The Trade Desk in the top 13% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 38.90. The Trade Desk's value of 73.58% is 89.2% above this benchmark. Historically, The Trade Desk's own Gross Margin % has ranged from 76.09 to 82.18 over the past decade. While the company's 10-year median is 79.49 vs. the industry median of 38.90, The Trade Desk has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Media - Diversified company?
The median Gross Margin % among Media - Diversified companies is 38.90, based on 953 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Trade Desk's current Gross Margin % of 73.58% is 89.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on The Trade Desk and its competitors. For the Media - Diversified industry, the median Gross Margin % is 38.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Trade Desk's current Gross Margin % is 73.58%, which is near median its own 10-year median of 79.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Trade Desk stock overvalued right now?
Based on GuruFocus' analysis, The Trade Desk (CHIX:TT8D) is currently considered Significantly Undervalued. The stock's GF Value™ is €123.28, compared to a current price of €17.71 — trading 85.6% below its estimated fair value. The current Gross Margin % is 73.58%, which is near median its 10-year median of 79.49 and 89.2% above the Media - Diversified industry median of 38.90. The Trade Desk's overall GF Score™ is 71/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For The Trade Desk (CHIX:TT8D), the current Gross Margin % is 73.58% 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 The Trade Desk (CHIX:TT8D) Overvalued in 2026?
Based on GuruFocus' analysis, The Trade Desk stock appears to be undervalued.
The current stock price of €17.71 is trading 85.6% below its estimated GF Value™ of €123.28.
GuruFocus considers The Trade Desk to be Significantly Undervalued.
Key valuation signals for CHIX:TT8D:
Gross Margin %: 73.58% (near median its 10-year median of 79.49)
GF Value™: €123.28 vs. price of €17.71 (85.6% below fair value)
Industry Position: 89.2% above the Media - Diversified median (#128 of 953)
No single metric tells the full story. See the CHIX:TT8D stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Trade Desk provides a self-service platform that helps advertisers and ad agencies programmatically find and purchase digital ad inventory (display, video, audio, and social) on devices like computers, smartphones, and connected TVs. The firm's platform is referred to as a DSP in the digital ad industry, and it generates revenue from fees based on a percentage of what its clients spend on advertising, sometimes referred to as a "take rate."
71GF Score
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