Trade Desk EBITDA vs. Net Income
| TTD Stock | USD 129.70 2.35 1.85% |
EBITDA | First Reported 2010-12-31 | Previous Quarter 280.9 M | Current Value 294.9 M | Quarterly Volatility 97.7 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.63 | 0.8121 |
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| Net Profit Margin | 0.1 | 0.0919 |
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| Operating Profit Margin | 0.19 | 0.103 |
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| Return On Assets | 0.0543 | 0.0366 |
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| Return On Equity | 0.0785 | 0.0827 |
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For Trade Desk profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Trade Desk to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Trade Desk utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Trade Desk's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Trade Desk over time as well as its relative position and ranking within its peers.
Trade |
Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Trade Desk. If investors know Trade will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Trade Desk listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 1.375 | Earnings Share 0.62 | Revenue Per Share 4.716 | Quarterly Revenue Growth 0.273 | Return On Assets 0.0469 |
The market value of Trade Desk is measured differently than its book value, which is the value of Trade that is recorded on the company's balance sheet. Investors also form their own opinion of Trade Desk's value that differs from its market value or its book value, called intrinsic value, which is Trade Desk's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Trade Desk's market value can be influenced by many factors that don't directly affect Trade Desk's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Trade Desk's value and its price as these two are different measures arrived at by different means. Investors typically determine if Trade Desk is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Trade Desk's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Trade Desk Net Income vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Trade Desk's current stock value. Our valuation model uses many indicators to compare Trade Desk value to that of its competitors to determine the firm's financial worth. Trade Desk is currently regarded as top stock in ebitda category among its peers. It also is currently regarded as top stock in net income category among its peers making up about 0.64 of Net Income per EBITDA. The ratio of EBITDA to Net Income for Trade Desk is roughly 1.57 . At present, Trade Desk's EBITDA is projected to increase significantly based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Trade Desk by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Trade Net Income vs. EBITDA
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Trade Desk |
| = | 280.9 M |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Trade Desk |
| = | 178.94 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Trade Net Income Comparison
Trade Desk is currently under evaluation in net income category among its peers.
Trade Desk Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Trade Desk, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Trade Desk will eventually generate negative long term returns. The profitability progress is the general direction of Trade Desk's change in net profit over the period of time. It can combine multiple indicators of Trade Desk, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Operating Income | 200.5 M | 106.5 M | |
| Net Income From Continuing Ops | 152.8 M | 97.4 M | |
| Income Before Tax | 268 M | 281.4 M | |
| Total Other Income Expense Net | 67.5 M | 70.9 M | |
| Net Income Applicable To Common Shares | 61.4 M | 81 M | |
| Net Income | 178.9 M | 98.6 M | |
| Income Tax Expense | 89.1 M | 93.5 M | |
| Interest Income | 590.4 K | 560.9 K | |
| Net Interest Income | 61 M | 64 M | |
| Non Operating Income Net Other | 1.1 M | 1.2 M | |
| Change To Netincome | 564.6 M | 592.8 M | |
| Net Income Per Share | 0.37 | 0.38 | |
| Income Quality | 3.34 | 1.92 | |
| Net Income Per E B T | 0.67 | 0.60 |
Trade Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Trade Desk. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Trade Desk position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Trade Desk's important profitability drivers and their relationship over time.
Use Trade Desk in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Trade Desk position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Trade Desk will appreciate offsetting losses from the drop in the long position's value.Trade Desk Pair Trading
Trade Desk Pair Trading Analysis
The ability to find closely correlated positions to Trade Desk could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Trade Desk when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Trade Desk - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Trade Desk to buy it.
The correlation of Trade Desk is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Trade Desk moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Trade Desk moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Trade Desk can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Trade Desk position
In addition to having Trade Desk in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out World Market Map. For information on how to trade Trade Stock refer to our How to Trade Trade Stock guide.You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
To fully project Trade Desk's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Trade Desk at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Trade Desk's income statement, its balance sheet, and the statement of cash flows.