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The Trade Desk (WBO:TTD) PS Ratio : 30.15 (As of Dec. 12, 2024)


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What is The Trade Desk PS Ratio?

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, The Trade Desk's share price is €127.56. The Trade Desk's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2024 was €4.23. Hence, The Trade Desk's PS Ratio for today is 30.15.

Warning Sign:

The Trade Desk Inc stock PS Ratio (=28.73) is close to 2-year high of 30.13

The historical rank and industry rank for The Trade Desk's PS Ratio or its related term are showing as below:

WBO:TTD' s PS Ratio Range Over the Past 10 Years
Min: 4.08   Med: 19.62   Max: 63.1
Current: 28.73

During the past 10 years, The Trade Desk's highest PS Ratio was 63.10. The lowest was 4.08. And the median was 19.62.

WBO:TTD's PS Ratio is ranked worse than
96.2% of 2735 companies
in the Software industry
Industry Median: 2.35 vs WBO:TTD: 28.73

The Trade Desk's Revenue per Sharefor the three months ended in Sep. 2024 was €1.13. Its Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2024 was €4.23.

During the past 12 months, the average Revenue per Share Growth Rate of The Trade Desk was 28.80% per year. During the past 3 years, the average Revenue per Share Growth Rate was 31.60% per year. During the past 5 years, the average Revenue per Share Growth Rate was 30.80% per year.

During the past 10 years, The Trade Desk's highest 3-Year average Revenue per Share Growth Rate was 98.90% per year. The lowest was 7.60% per year. And the median was 32.10% per year.

Back to Basics: PS Ratio


The Trade Desk PS Ratio Historical Data

The historical data trend for The Trade Desk's PS Ratio 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.

* Premium members only.

The Trade Desk PS Ratio Chart

The Trade Desk Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 18.78 46.92 38.18 14.20 18.49

The Trade Desk Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
PS Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 21.79 18.49 21.26 22.45 23.75

Competitive Comparison of The Trade Desk's PS Ratio

For the Software - Application subindustry, The Trade Desk's PS Ratio, along with its competitors' market caps and PS Ratio 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's PS Ratio Distribution in the Software Industry

For the Software industry and Technology sector, The Trade Desk's PS Ratio distribution charts can be found below:

* The bar in red indicates where The Trade Desk's PS Ratio falls into.



The Trade Desk PS Ratio Calculation

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.

The Trade Desk's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=127.56/4.231
=30.15

The Trade Desk's Share Price of today is €127.56.
The Trade Desk's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was €4.23.

* 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.

It can also be calculated from the numbers for the whole company:

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


The Trade Desk  (WBO:TTD) PS Ratio Explanation

The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.

When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.


The Trade Desk PS Ratio Related Terms

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The Trade Desk Business Description

Traded in Other Exchanges
Address
42 North Chestnut Street, Ventura, CA, USA, 93001
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 different devices like computers, smartphones, 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.