Etsy Inc., through its marketplace, enable people to connect, both online and offline, to make, sell and buy handmade and vintage items, art, and supplies, as well as regular items such as clothing, housewares, paper goods, candles, bags and purses, music, and wood-working items. The company was founded in 2005 and is based in Brooklyn, New York.
ETSY Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Etsy Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Etsy Inc ranked in the 84th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 738.17%. As for the metrics that stood out in our discounted cash flow analysis of Etsy Inc, consider:
The compound growth rate in the free cash flow of Etsy Inc over the past 5.07 years is 1.35%; that's better than 91.93% of cash flow producing equities in the Technology sector, where it is classified.
The business' balance sheet reveals debt to be 6% of the company's capital (with equity being the remaining amount). Approximately just 15.77% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Etsy Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than just 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Etsy Inc? See PFPT, DXC, SAIL, CLS, and MEET.
Etsy (ETSY), the niche eCommerce website, has put in a stellar performance with share price up over 200% off the lows that were seen after the crisis hit the markets. Etsy has so many things going for it and continues to consolidate its dominance in the handmade and vintage supplies...
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