Stock Analysis

What Does The Trade Desk, Inc.'s (NASDAQ:TTD) Share Price Indicate?

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NasdaqGM:TTD
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Today we're going to take a look at the well-established The Trade Desk, Inc. (NASDAQ:TTD). The company's stock received a lot of attention from a substantial price increase on the NASDAQGM over the last few months. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s examine Trade Desk’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

Check out our latest analysis for Trade Desk

What Is Trade Desk Worth?

Great news for investors – Trade Desk is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $86.96, but it is currently trading at US$57.84 on the share market, meaning that there is still an opportunity to buy now. However, given that Trade Desk’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

Can we expect growth from Trade Desk?

earnings-and-revenue-growth
NasdaqGM:TTD Earnings and Revenue Growth October 26th 2022

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Trade Desk's earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since TTD is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on TTD for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy TTD. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.

So while earnings quality is important, it's equally important to consider the risks facing Trade Desk at this point in time. For example - Trade Desk has 3 warning signs we think you should be aware of.

If you are no longer interested in Trade Desk, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Valuation is complex, but we're helping make it simple.

Find out whether Trade Desk is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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