Etsy, Inc.

Rank #13Hypergrowth

ETSY · NYSE · Consumer Cyclical

Etsy, Inc. (ETSY) — Rank #13 by gross profitability (GP/assets 0.85) · ROE -11.7% · Piotroski F-Score N/A.

As-of 2026-09-15 · CIK 0001370637 · all metrics point-in-time as of the filing date.

About

Etsy, Inc., together with its subsidiaries, operates two-sided online marketplaces that connect buyers and sellers in the United States, the United Kingdom, and internationally.

It operates through Etsy and Depop segments. The company operates Etsy marketplace that connects artisans with various consumers; and Depop, a fashion resale marketplace. It also provides marketplace activities, including transaction offsite advertising, payments processing, and listing fees, as well as from optional seller services, which include on-site advertising and shipping labels. The company was formerly known as Indieco, Inc changed its name to Etsy, Inc. in June 2006. Etsy, Inc.

was founded in 2005 and is headquartered in Brooklyn, New York.

Industry: Internet Retail
Sector: Consumer Cyclical
State: DE
Filer Category: Large accelerated filer
Fiscal Year End: December 31
Website: etsy.com

Price History

ETSY-67.0% · -19.9% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

$6.83B

P/E (annual)

53.5

P/S (annual)

2.4

P/B

—

P/OCF (annual)

9.8

Shareholder Yield

-9.3%

Employees

2,375

Industry

Internet Retail

Exchange

NYSE

Signal Flags

3 green2 yellow

Revenue growth acceleratingGrowth rate increasing year over year

Operating leverage expandingOperating income growing faster than revenue

Deferred revenue growingRevenue and deferred revenue both growing — retention signal

Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation

Disclosure regressionA previously-disclosed line item is no longer reported — worth checking the filing for why

Quality Profile

Profitability

1/1 pass

GP / assets

0.85

Return on equity

-11.7%

Gross margin trend

PASS

Safety

1/1 pass

Balance-sheet safety

PASS

Debt / equity

—

Current ratio

1.48×

Net cash

-$1.86B

Cash Flow

3/3 pass

Positive FCF

PASS

Cash-backed earnings

PASS

Accruals healthy

PASS

SBC / revenue

8.5%

Growth

1/2 pass

Revenue growth

690.1%

Piotroski F-Score

N/A

Share dilution

9.3%

Terry Smith quality gate

Passes 2/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

2.4%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 9.3% — per-share value needs a total required return of 11.7% once share-count change is priced in.

vs. own 6-year median revenue growth: 39.8%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

-1.5%

r = 10% (base)

2.4%

r = 12%

5.9%

Net debt / market cap: 20.2%

Note: current FCF margin is 1.6σ above its historical mean — implied growth may understate valuation risk if the margin reverts.

Base FCF: $678M3Y mean FCF: $30.8M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

81.9xFair

37.2xmed 79.0x116.8x

P / S

Price / revenue per share

17.4xExpensive

1.9xmed 5.4x17.4x

P / B

Price / book value per share

40.5xExpensive

2.8xmed 12.9x69.1x

P / GP

Price / gross profit per share

23.8xExpensive

3.0xmed 8.2x23.8x

P / FCF

Price / free cash flow per share

44.4xFair

31.5xmed 45.1x130.4x

Earnings bubble check

Current margins may be above sustainable levels — a P/E based on peak earnings can overstate cheapness.

Gross margin73.1% now vs 64.5%–73.1% 10yr range

2.2σ above average

Operating margin24.6% now vs -0.7%–24.6% 10yr range

2.0σ above average

FCF margin39.3% now vs 3.0%–39.3% 10yr range

1.6σ above average

Revenue growth372.8% now vs 20.9%–372.8% 10yr range

2.4σ above average

Disclosure regression check

3 previously-disclosed line items are no longer reported. Worth checking the filing for why.

Interest expenseCost structure

last seen FY2018

Property, plant & equipmentBalance sheet detail

last seen FY2017

AcquisitionsCash flow detail

last seen FY2018

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.85

Primary signal (Novy-Marx).

1st of 9 SIC 7389 peers

Return on equity

-11.7%

Gross margin

71.6%

3rd of 9 SIC 7389 peers

Revenue growth (YoY)

690.1%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

	2015	2016	2017	2020
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

—

Revenue CAGR (5Y)

10.8%

Earnings CAGR (3Y)

—

FCF CAGR (3Y)

—

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

—

Current ratio

1.48×

7th of 9 SIC 7389 peers

Quick ratio

0.89×

Net cash

-$1.86B

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$678.03M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

3.16

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

8.5%

Stock-based comp intensity.

Piotroski F-Score

F-Score

N/A

Only 8/9 components determinable.

Lifecycle Phase History

2013-2020

20132020

Hypergrowth

View full financial statements →