Etsy Stock Fair Value Calculation – Investment Thesis: Despite Recent Downturn, Etsy Still a Valuable Asset with Potential for Future Growth
January 31, 2023

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Etsy Stock Fair Value Calculation – Etsy ($NASDAQ:ETSY) is an e-commerce platform that is focused on handmade, vintage, and craft supplies. Despite the recent downturn in the market due to the pandemic, Etsy has held its own against its competitors and remains a valuable asset. Etsy is well-positioned for future growth, as demand for handmade and vintage items is likely to remain strong in the coming years. Furthermore, the macroeconomic environment is likely to improve, which could further bolster Etsy’s performance. The company has also diversified its revenue streams and expanded into new markets, which could help to drive growth.
Additionally, as more people continue to shop online, Etsy is likely to benefit from the shift in consumer spending habits. In terms of valuation, Etsy is currently trading at a relatively attractive price given its potential for growth. The stock is also trading at a discount to its peers, indicating there may be value to be had. Furthermore, the company has a solid balance sheet and has been able to maintain profitability despite the negative economic conditions. Overall, our investment thesis for Etsy is that, despite the recent downturn, the stock is still a valuable asset with potential for future growth.
Stock Price
On Wednesday, ETSY opened at $133.1 and closed at $135.9, a 0.6% decrease from its previous closing price of 136.7. The recent decrease in share price is a cause for concern, as investors are hesitant to invest in a company that is not performing well. As an online marketplace, Etsy offers a unique platform for entrepreneurs to sell their handmade goods, vintage items, and craft supplies. It also allows small business owners to reach a wider audience than traditional brick-and-mortar stores. Furthermore, Etsy’s customer service and support are unparalleled, providing sellers with a secure online platform to do business on. Etsy also has several other factors working in its favor for potential future growth. It also has a diversified revenue stream from sources such as advertising and transaction fees, which helps to reduce the risk associated with relying on sales alone.
Additionally, Etsy has built a strong brand reputation that continues to attract new customers and investors. Its unique platform, strong customer base, diversified revenue stream, and strong brand reputation make it an attractive option for those looking to invest in a promising business. With the right strategies and management in place, Etsy can continue to be a profitable asset for years to come. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Etsy. etsy“>More…
| Total Revenues | Net Income | Net Margin |
| 2.48k | -642.28 | 15.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Etsy. etsy“>More…
| Operations | Investing | Financing |
| 682.32 | -53.04 | -427.83 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Etsy. etsy“>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.45k | 3.06k | -4.82 |
Key Ratios Snapshot
Some of the financial key ratios for Etsy are shown below. etsy“>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 49.0% | 61.1% | 16.4% |
| FCF Margin | ROE | ROA |
| 25.9% | -2030.2% | 10.3% |
VI Analysis – Etsy Stock Fair Value Calculation
Etsy Inc. (ETSY) is a company whose fundamentals reflect its long term potential. A simple analysis of the company’s stock with the help of VI app reveals that the intrinsic value of ETSY share is around $176.7. This value is calculated through the VI Line tool. The current market price of the stock is $135.9, which makes it undervalued by 23%. The financials of the company are sound and support the long term growth prospects of the company. The balance sheet of the company is strong with sound liquidity, equity and debt ratios. The company also has healthy cash flows from operations that have been consistently growing in recent years. The company’s financial performance has been consistently improving, indicating a positive outlook for the future. The company has a diversified product portfolio and is well positioned to capture the growing demand in the e-commerce space. The company has been focusing on introducing new products and services to expand its customer base and increase revenues. In addition, the company has been investing in technology and innovation to improve its efficiency and increase its competitive advantage. Overall, Etsy Inc. is a well-established company with robust fundamentals and solid financials. The company’s stock looks undervalued compared to its intrinsic value, which makes it a good investment option in the current market. More…
VI Peers
Etsy Inc is a leading ecommerce company that focuses on selling handmade and vintage items. The company competes with other ecommerce giants such as eBay Inc, Poshmark Inc, and Zalando SE. Etsy has a loyal customer base and a strong brand identity. The company differentiates itself from its competitors by offering unique items that cannot be found elsewhere. Etsy is a publicly traded company that was founded in 2005.
– eBay Inc ($NASDAQ:EBAY)
eBay Inc is an American multinational e-commerce corporation based in San Jose, California, that facilitates consumer-to-consumer and business-to-consumer sales through its website. eBay was founded by Pierre Omidyar in 1995, and became a notable success story of the dot-com bubble. Today, it is a multibillion-dollar business with operations in about 30 countries.
The company has a market cap of 21.15B as of 2022 and a Return on Equity of -37.67%. eBay’s business model is based on enabling sellers to offer their items for sale on the platform, and buyers to find items they are looking for and purchase them. The company does not own or inventory the items being sold on its platform – instead, it simply facilitates the transaction between buyers and sellers.
eBay makes money by charging sellers a listing fee for each item they list for sale on the platform, as well as a commission on each item that is sold. In addition, the company also generates revenue from advertising and other fees.
– Poshmark Inc ($NASDAQ:POSH)
Poshmark is a social commerce platform for buying and selling fashion. It has a community of over 50 million sellers and buyers. Poshmark was founded in 2011 and is headquartered in Redwood City, California.
Poshmark’s market cap is 1.4B as of 2022. The company has a Return on Equity of -9.05%. Poshmark is a social commerce platform for buying and selling fashion. It has a community of over 50 million sellers and buyers. Poshmark was founded in 2011 and is headquartered in Redwood City, California.
– Zalando SE ($OTCPK:ZLNDY)
Zalando SE is a publicly traded German e-commerce company specializing in fashion, headquartered in Berlin. Founded in 2008, Zalando SE went public in 2014. As of 2022, Zalando SE has a market cap of 5.9B and a Return on Equity of 4.78%.
Zalando SE offers a platform for fashion and lifestyle. The company offers a wide range of products from over 2,000 brands for women, men, and children. The company operates in 15 European countries.
Summary
Despite its recent downturn, the company still has potential for future growth. Its strong brand presence, wide selection of unique products, and commitment to sustainability are key factors that make it attractive to investors. Additionally, its large user base and growing revenues provide a solid foundation for long-term success. While issues such as increased competition and rising costs remain a concern, Etsy continues to be an attractive investment option with potential to deliver returns in the future.
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