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.
The financial data reflects a significant transition from early-stage losses to sustained profitability, accompanied by substantial volatility in market valuation between 2016 and 2022.
- Earnings Performance
- A pivot to profitability occurred in 2018 following two years of negative earnings per share (EPS). Since this transition, EPS has exhibited a consistent upward trajectory, growing from 0.67 USD in 2018 to 3.88 USD by February 2022, representing a steady increase in bottom-line performance.
- Price to Earnings (P/E) Volatility
- The P/E ratio experienced a sharp expansion starting in 2019, reaching a peak of 109.97. This suggests a period of high market optimism and aggressive valuation. While the ratio remained elevated through 2021, it contracted significantly to 38.34 by February 2022, signaling a normalization of investor expectations.
- Share Price and Valuation Divergence
- The share price peaked in February 2021 at 220.27 USD, coinciding with a high P/E ratio of 79.50. By February 2022, a notable divergence is observed: while EPS reached its highest point in the period analyzed (3.88 USD), the share price declined to 148.94 USD. This resulted in a valuation multiple that returned to levels nearly identical to those observed in 2018, indicating that the reduction in share price outweighed the growth in earnings.
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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 | 39.27 |
| Feb 26, 2021 | 79.50 | 73.74 |
| 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).