The Trade DeskMEX:TTD +3.44%89 Return-on-Tangible-Equity is 6.51% as of Mar. 2026, which is 65% below its 10-year median of 18.54. GuruFocus rates MEX:TTD with a GF Score™ of 89/100 and a GF Value™ of MXN2,147.81 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 859 Media - Diversified companies, The Trade Desk ranks better than 72.41% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. The Trade Desk's annualized net income for the quarter that ended in Mar. 2026 was MXN2,885 Mil. The Trade Desk's average shareholder tangible equity for the quarter that ended in Mar. 2026 was MXN44,309 Mil. Therefore, The Trade Desk's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 6.51%.
The historical rank and industry rank for The Trade Desk's Return-on-Tangible-Equity or its related term are showing as below:
MEX:TTD'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 2.96 Med: 18.54 Max: 30.19
Current: 16.73
During the past 12 years, The Trade Desk's highest Return-on-Tangible-Equity was 30.19%. The lowest was 2.96%. And the median was 18.54%.
MEX:TTD's Return-on-Tangible-Equity is ranked better than 72.41% of 859
companies
in the Media - Diversified industry
Industry Median: 5.42
vs MEX:TTD: 16.73
The Trade Desk (MEX:TTD) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
The Trade Desk Return-on-Tangible-Equity Related Terms
The Trade Desk Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for The Trade Desk's Return-on-Tangible-Equity 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.
MEX:TTD vs LFTO, MGNI, ZD: Return-on-Tangible-Equity Comparison
For the Advertising Agencies subindustry, The Trade Desk's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, The Trade Desk's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where The Trade Desk's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 6.51% mean?
The Trade Desk (MEX:TTD) has a Return-on-Tangible-Equity of 6.51% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on The Trade Desk and its competitors. This is 65% below median its historical median of 18.54. Over the past decade, The Trade Desk's Return-on-Tangible-Equity has ranged from 2.96 to 30.19. According to the industry distribution chart, The Trade Desk ranks #237 out of 859 companies in the Media - Diversified industry, placing it in the top 27.6%.
Is The Trade Desk's Return-on-Tangible-Equity too high?
The Trade Desk's current Return-on-Tangible-Equity of 6.51% is 65% below median its 10-year median of 18.54. Over the past 10 years, this metric has ranged from a low of 2.96 to a high of 30.19. The Media - Diversified industry median Return-on-Tangible-Equity is 5.42. The Trade Desk's value of 6.51% is 20.1% above this industry median. Based on the distribution chart, The Trade Desk ranks #237 out of 859 companies in the Media - Diversified industry, which is above the industry midpoint. Overall, The Trade Desk has a GF Score™ of 89/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Trade Desk's Return-on-Tangible-Equity compare to LFTO and MGNI?
According to the Media - Diversified industry distribution chart, The Trade Desk ranks #237 out of 859 companies for Return-on-Tangible-Equity. This puts The Trade Desk in the upper half of its industry. The industry median Return-on-Tangible-Equity is 5.42. The Trade Desk's value of 6.51% is 20.1% above this benchmark. Historically, The Trade Desk's own Return-on-Tangible-Equity has ranged from 2.96 to 30.19 over the past decade. While the company's 10-year median is 18.54 vs. the industry median of 5.42, 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 Return-on-Tangible-Equity for a Media - Diversified company?
The median Return-on-Tangible-Equity among Media - Diversified companies is 5.42, based on 859 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Trade Desk's current Return-on-Tangible-Equity of 6.51% is 20.1% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on The Trade Desk and its competitors. For the Media - Diversified industry, the median Return-on-Tangible-Equity is 5.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Trade Desk's current Return-on-Tangible-Equity is 6.51%, which is 65% below median its own 10-year median of 18.54. 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 (MEX:TTD) is currently considered Significantly Undervalued. The stock's GF Value™ is MXN2,147.81, compared to a current price of MXN331.00 — trading 84.6% below its estimated fair value. The current Return-on-Tangible-Equity is 6.51%, which is 65% below median its 10-year median of 18.54 and 20.1% above the Media - Diversified industry median of 5.42. The Trade Desk's overall GF Score™ is 89/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For The Trade Desk (MEX:TTD), the current Return-on-Tangible-Equity is 6.51% 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 (MEX:TTD) Overvalued in 2026?
Based on GuruFocus' analysis, The Trade Desk stock appears to be undervalued.
The current stock price of MXN331.00 is trading 84.6% below its estimated GF Value™ of MXN2,147.81.
GuruFocus considers The Trade Desk to be Significantly Undervalued.
Key valuation signals for MEX:TTD:
Return-on-Tangible-Equity: 6.51% (65% below median its 10-year median of 18.54)
GF Value™: MXN2,147.81 vs. price of MXN331.00 (84.6% below fair value)
Industry Position: 20.1% above the Media - Diversified median (#237 of 859)
No single metric tells the full story. See the MEX:TTD 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."
89GF Score
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