Etsy, Inc. (ETSY) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-94.9%

$4.77

vs $93.99 price

Levered DCF

$45.09

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

1.96

Grey zone

Rating

B-

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	33×	20.03×	31.66×	-21.86×	56.43×	61.77×	55.37×	77.98×
P/B	-4.96×	-8.01×	-18.26×	-27.75×	44.31×	29.06×	13.04×	15.07×
P/S	1.89×	2.16×	3.61×	5.92×	11.96×	12.5×	6.48×	10.01×
EV / EBITDA	19.41×	14.37×	28.64×	-30.22×	53.01×	46.02×	37.29×	57.87×
Gross margin	71.6%	72.4%	69.8%	71.0%	71.9%	73.1%	66.9%	68.4%
Operating margin	12.8%	13.5%	10.2%	-25.7%	20.0%	24.6%	10.8%	12.4%
Net margin	5.7%	10.8%	11.2%	-27.1%	21.2%	20.2%	11.7%	12.8%
Current ratio	1.44×	2×	2.21×	2.4×	2.18×	4.17×	4.89×	6.07×
Debt / equity	-2.8×	-3.15×	-4.39×	-4.37×	3.8×	1.5×	2.08×	0.85×
Interest coverage	19.88×	27.54×	19.93×	-46.48×	47.12×	10.09×	3.65×	3.37×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	-14.8%	-40.0%	-56.6%	126.9%	78.5%	47.0%	23.6%	19.3%
Return on invested capital	11.5%	16.0%	14.1%	-32.7%	14.5%	20.7%	6.5%	9.4%
Return on assets	5.8%	12.5%	11.5%	-26.3%	12.9%	14.5%	6.2%	8.6%
Free cash flow yield	11.7%	11.7%	6.7%	4.3%	2.2%	3.1%	3.6%	3.0%
Earnings yield	3.0%	5.0%	3.1%	-4.6%	1.8%	1.6%	1.8%	1.3%
Enterprise value	$7.1B	$7.7B	$11.4B	$16.7B	$29.5B	$21.4B	$5.7B	$6B
Net debt / EBITDA	4.58×	2.96×	3.7×	-2.67×	2.89×	-0.28×	2.64×	-0.24×
Cash conversion cycle (days)	-77	-76	-92	-92	-100	4	-73	-7