TTD – Market expectations are for Uniform ROA to reach a new peak, but management may have concerns about Unified ID, growth, and advertising efficiency

• The Trade Desk (TTD) currently trades well above corporate and historical averages relative to Uniform earnings, with a 119.80x Uniform P/E (Fwd. V/E’).
• At these levels, markets are pricing in expectations for Uniform ROA to reach a new peak of 73%, accompanied by 25% Uniform asset growth.
• Meanwhile, analysts expect Uniform ROA to only improve to 23% in 2022, accompanied by 37% Uniform asset growth.
• If sustained going forward, these levels would imply a stock price closer to $36, representing significant potential equity downside for the firm.
• Moreover, the firm’s most recent earnings call suggests management may have concerns about Unified ID, growth, and advertising efficiency.