Price to Earnings (P/E)
since 2015
Calculation
Etsy Inc., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income (loss)1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 25, 2022 | 38.34 | = | 148.94 | ÷ | 3.88 | 3.88 | = | 493,507 | ÷ | 127,032,946 | |
| Feb 26, 2021 | 79.50 | = | 220.27 | ÷ | 2.77 | 2.77 | = | 349,246 | ÷ | 126,049,276 | |
| Feb 27, 2020 | 71.24 | = | 57.92 | ÷ | 0.81 | 0.81 | = | 95,894 | ÷ | 117,949,068 | |
| Feb 28, 2019 | 109.97 | = | 71.27 | ÷ | 0.65 | 0.65 | = | 77,491 | ÷ | 119,566,393 | |
| Mar 1, 2018 | 37.61 | = | 25.32 | ÷ | 0.67 | 0.67 | = | 81,800 | ÷ | 121,502,754 | |
| Feb 28, 2017 | — | = | 12.12 | ÷ | -0.26 | -0.26 | = | -29,901 | ÷ | 116,129,719 | |
| Mar 1, 2016 | — | = | 8.36 | ÷ | -0.48 | -0.48 | = | -54,063 | ÷ | 112,699,756 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Etsy Inc. Annual Report.
- Share Price Trend
- The share price of the company demonstrated a significant upward trend from 2016 to 2022, starting at $8.36 in March 2016 and increasing sharply to a peak of $220.27 by February 2021. Following this peak, the share price declined to $148.94 in February 2022, indicating some market correction after substantial growth.
- Earnings Per Share (EPS) Trend
- EPS showed a consistent improvement over the analyzed period. The company began with negative earnings per share in 2016 (-$0.48) and 2017 (-$0.26), shifted to profitability in 2018 with $0.67, and continued to increase steadily through subsequent years, reaching $3.88 by 2022. This reflects a clear trend of improving profitability and operational performance.
- Price-to-Earnings (P/E) Ratio Analysis
- The P/E ratio data is available starting from 2018, with an initial value of 37.61. It then increased substantially, peaking at 109.97 in 2019, followed by a decline to 38.34 by 2022. The high P/E ratios between 2018 and 2021 indicate strong market expectations for future growth. The decreasing P/E in 2022, despite increasing EPS, suggests a market recalibration, possibly reflecting tempered growth expectations or a correction following the rapid price appreciation.
- Overall Insights
- The company experienced a transition from losses to profitability, alongside a strong run-up in share price culminating in 2021, followed by a partial correction in 2022. The increase in EPS confirms improving underlying financial performance. The initially high and subsequently decreasing P/E ratio points to evolving investor sentiment, shifting from exuberant growth expectations toward a more moderate valuation as earnings matured.
Comparison to Competitors
Etsy Inc., P/E, long-term trends, comparison to competitors
| Etsy Inc. | Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | TJX Cos. Inc. | |
|---|---|---|---|---|---|
| Feb 25, 2022 | 38.34 | 48.08 | 24.51 | 22.36 | 881.78 |
| Feb 26, 2021 | 79.50 | 78.20 | 17.38 | 11.96 | 17.13 |
| Feb 27, 2020 | 71.24 | 86.30 | 18.87 | 37.80 | 21.11 |
| Feb 28, 2019 | 109.97 | 79.30 | 23.51 | 20.26 | 20.19 |
| Mar 1, 2018 | 37.61 | 228.25 | 22.37 | 22.62 | 22.11 |
| Feb 28, 2017 | — | 166.52 | 23.32 | 26.67 | 22.87 |
| Mar 1, 2016 | — | 463.73 | 23.15 | 26.24 | 21.62 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
Comparison to Sector (Consumer Discretionary Distribution & Retail)
Etsy Inc., P/E, long-term trends, comparison to sector (consumer discretionary distribution & retail)
| Etsy Inc. | Consumer Discretionary Distribution & Retail | |
|---|---|---|
| Feb 25, 2022 | 38.34 | 40.84 |
| Feb 26, 2021 | 79.50 | 49.11 |
| Feb 27, 2020 | 71.24 | 48.49 |
| Feb 28, 2019 | 109.97 | 45.41 |
| Mar 1, 2018 | 37.61 | 60.50 |
| Feb 28, 2017 | — | 47.75 |
| Mar 1, 2016 | — | 45.72 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
Comparison to Industry (Consumer Discretionary)
Etsy Inc., P/E, long-term trends, comparison to industry (consumer discretionary)
| Etsy Inc. | Consumer Discretionary | |
|---|---|---|
| Feb 25, 2022 | 38.34 | 38.75 |
| Feb 26, 2021 | 79.50 | 72.10 |
| Feb 27, 2020 | 71.24 | 39.37 |
| Feb 28, 2019 | 109.97 | 33.13 |
| Mar 1, 2018 | 37.61 | 47.03 |
| Feb 28, 2017 | — | 29.19 |
| Mar 1, 2016 | — | 24.70 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).