ETSY PE Ratio & Valuation,Is ETSY Overvalued

ETSY Relative Valuation

ETSY's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, ETSY is overvalued; if below, it's undervalued.

Historical Valuation

ETSY Inc (ETSY) is now in the Undervalued zone, suggesting that its current forward PE ratio of 12.51 is considered Undervalued compared with the five-year average of 26.54. The fair price of ETSY Inc (ETSY) is between 57.14 to 172.59 according to relative valuation methord. Compared to the current price of 53.07 USD , ETSY Inc is Undervalued By 7.13%.

Relative Value

Fair Zone

57.14-172.59

Current Price：53.07

7.13%

Undervalued

12.34

9.89

EV/EBITDA

ETSY Inc. (ETSY) has a current EV/EBITDA of 9.89. The 5-year average EV/EBITDA is 20.05. The thresholds are as follows: Strongly Undervalued below -2.25, Undervalued between -2.25 and 8.90, Fairly Valued between 31.20 and 8.90, Overvalued between 31.20 and 42.35, and Strongly Overvalued above 42.35. The current Forward EV/EBITDA of 9.89 falls within the Historic Trend Line -Fairly Valued range.

19.90

EV/EBIT

ETSY Inc. (ETSY) has a current EV/EBIT of 19.90. The 5-year average EV/EBIT is 35.30. The thresholds are as follows: Strongly Undervalued below 5.32, Undervalued between 5.32 and 20.31, Fairly Valued between 50.30 and 20.31, Overvalued between 50.30 and 65.29, and Strongly Overvalued above 65.29. The current Forward EV/EBIT of 19.90 falls within the Undervalued range.

1.81

ETSY Inc. (ETSY) has a current PS of 1.81. The 5-year average PS is 5.12. The thresholds are as follows: Strongly Undervalued below -1.61, Undervalued between -1.61 and 1.75, Fairly Valued between 8.49 and 1.75, Overvalued between 8.49 and 11.86, and Strongly Overvalued above 11.86. The current Forward PS of 1.81 falls within the Historic Trend Line -Fairly Valued range.

7.62

P/OCF

ETSY Inc. (ETSY) has a current P/OCF of 7.62. The 5-year average P/OCF is 19.61. The thresholds are as follows: Strongly Undervalued below -6.68, Undervalued between -6.68 and 6.46, Fairly Valued between 32.75 and 6.46, Overvalued between 32.75 and 45.89, and Strongly Overvalued above 45.89. The current Forward P/OCF of 7.62 falls within the Historic Trend Line -Fairly Valued range.

8.55

P/FCF

ETSY Inc. (ETSY) has a current P/FCF of 8.55. The 5-year average P/FCF is 20.37. The thresholds are as follows: Strongly Undervalued below -5.31, Undervalued between -5.31 and 7.53, Fairly Valued between 33.21 and 7.53, Overvalued between 33.21 and 46.05, and Strongly Overvalued above 46.05. The current Forward P/FCF of 8.55 falls within the Historic Trend Line -Fairly Valued range.

ETSY Inc (ETSY) has a current Price-to-Book (P/B) ratio of -4.77. Compared to its 3-year average P/B ratio of -13.48 , the current P/B ratio is approximately -64.63% higher. Relative to its 5-year average P/B ratio of 3.60, the current P/B ratio is about -232.51% higher. ETSY Inc (ETSY) has a Forward Free Cash Flow (FCF) yield of approximately 12.66%. Compared to its 3-year average FCF yield of 9.51%, the current FCF yield is approximately 33.17% lower. Relative to its 5-year average FCF yield of 7.06% , the current FCF yield is about 79.38% lower.

-4.70

P/B

Median3y

-13.48

Median5y

3.60

12.66

FCF Yield

Median3y

9.51

Median5y

7.06

Competitors Valuation Multiple

The average P/S ratio for ETSY's competitors is , providing a benchmark for relative valuation. ETSY Inc Corp (ETSY) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 2.36%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of ETSY increased by 0.45% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 8.66 to 11.14.

The secondary factor is the Revenue Growth, contributed 2.36%to the performance.

Overall, the performance of ETSY in the past 1 year is driven by Margin Expansion. Which is more sustainable.

2.36%

662.41M → 678.03M

Revenue Growth

28.64%

8.66 → 11.14

Margin Expansion

-30.55%

49.12 → 34.11

P/E Change

0.45%

52.89 → 53.13

Mkt Cap Growth

People Also Watch

Frequently Asked Questions

Is ETSY Inc (ETSY) currently overvalued or undervalued?

What is ETSY Inc (ETSY) fair value?

ETSY's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of ETSY Inc (ETSY) is between 57.14 to 172.59 according to relative valuation methord.

How does ETSY's valuation metrics compare to the industry average?

What is the current P/B ratio for ETSY Inc (ETSY) as of Dec 16 2025?

As of Dec 16 2025, ETSY Inc (ETSY) has a P/B ratio of -4.77. This indicates that the market values ETSY at -4.77 times its book value.

What is the current FCF Yield for ETSY Inc (ETSY) as of Dec 16 2025?

As of Dec 16 2025, ETSY Inc (ETSY) has a FCF Yield of 12.66%. This means that for every dollar of ETSY Inc’s market capitalization, the company generates 12.66 cents in free cash flow.

What is the current Forward P/E ratio for ETSY Inc (ETSY) as of Dec 16 2025?

As of Dec 16 2025, ETSY Inc (ETSY) has a Forward P/E ratio of 12.51. This means the market is willing to pay $12.51 for every dollar of ETSY Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for ETSY Inc (ETSY) as of Dec 16 2025?

As of Dec 16 2025, ETSY Inc (ETSY) has a Forward P/S ratio of 1.81. This means the market is valuing ETSY at $1.81 for every dollar of expected revenue over the next 12 months.

ETSY Valuation