Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Etsy Inc., FCFE calculation
US$ in thousands
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).
The financial trajectory from 2017 to 2021 is characterized by a significant and sustained expansion in both operational cash generation and the cash available to equity holders. While operational cash flows experienced a period of volatility and a slight correction in the final year, the free cash flow to equity exhibited an uninterrupted upward trend, accelerating markedly between 2018 and 2021.
- Net Cash Provided by Operating Activities
- Operational cash flow demonstrated substantial growth, rising from 67.4 million US dollars in 2017 to a peak of 678.9 million US dollars in 2020. A period of relative stability occurred between 2018 and 2019, followed by a sharp increase of approximately 228% in 2020. A slight contraction was observed in 2021, with cash flow decreasing to 651.5 million US dollars, although this remained significantly above pre-2020 levels.
- Free Cash Flow to Equity (FCFE)
- FCFE exhibited an aggressive growth pattern, increasing every consecutive year throughout the period. Starting at 40.5 million US dollars in 2017, the figure grew to 462.9 million US dollars in 2018 and eventually reached 1.47 billion US dollars by 2021. The most notable acceleration occurred between 2017 and 2018, where a growth of over 1,000% was recorded.
- Comparative Analysis of Cash Flow Metrics
- A divergence is observable between operational cash flow and FCFE starting in 2018. From this point forward, FCFE consistently exceeded net cash provided by operating activities. The widening gap—culminating in 2021 where FCFE was more than double the operating cash flow—indicates that cash inflows from financing activities, such as net borrowing, played a dominant role in increasing the cash available to equity holders, offsetting capital expenditures.
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Price to FCFE Ratio, Current
Etsy Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 125,688,316 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in thousands) | 1,472,317) |
| FCFE per share | 11.71 |
| Current share price (P) | 100.03 |
| Valuation Ratio | |
| P/FCFE | 8.54 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Amazon.com Inc. | 132.83 |
| Home Depot Inc. | 25.09 |
| Lowe’s Cos. Inc. | 10.59 |
| TJX Cos. Inc. | 31.00 |
| P/FCFE, Sector | |
| Consumer Discretionary Distribution & Retail | 95.53 |
| P/FCFE, Industry | |
| Consumer Discretionary | 115.17 |
Based on: 10-K (reporting date: 2021-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Etsy Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 127,032,946 | 126,049,276 | 117,949,068 | 119,566,393 | 121,502,754 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in thousands)2 | 1,472,317) | 1,090,251) | 742,725) | 462,962) | 40,583) | |
| FCFE per share3 | 11.59 | 8.65 | 6.30 | 3.87 | 0.33 | |
| Share price1, 4 | 148.94 | 220.27 | 57.92 | 71.27 | 25.32 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 12.85 | 25.47 | 9.20 | 18.41 | 75.81 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Amazon.com Inc. | — | — | — | — | — | |
| Home Depot Inc. | 15.41 | — | — | — | — | |
| Lowe’s Cos. Inc. | 12.28 | — | — | — | — | |
| TJX Cos. Inc. | 10.55 | — | — | — | — | |
| P/FCFE, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 59.10 | — | — | — | — | |
| P/FCFE, Industry | ||||||
| Consumer Discretionary | 83.41 | — | — | — | — | |
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).
1 Data adjusted for splits and stock dividends.
3 2021 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 1,472,317,000 ÷ 127,032,946 = 11.59
4 Closing price as at the filing date of Etsy Inc. Annual Report.
5 2021 Calculation
P/FCFE = Share price ÷ FCFE per share
= 148.94 ÷ 11.59 = 12.85
6 Click competitor name to see calculations.
The analysis of the Price to Free Cash Flow to Equity (P/FCFE) ratio reveals a period of significant volatility in market valuation despite a consistent and strong upward trajectory in cash flow generation per share.
- FCFE per Share Growth
- A continuous year-over-year increase in FCFE per share is observed from 2017 through 2021. The value escalated from $0.33 in 2017 to $11.59 in 2021, indicating a robust and steady expansion in the cash available to equity holders.
- Share Price Dynamics
- The share price exhibited substantial fluctuations throughout the period. Following an initial increase in 2018 and a slight contraction in 2019, the price peaked at $220.27 in 2020 before correcting to $148.94 by the end of 2021.
- P/FCFE Ratio Interpretation
- The P/FCFE ratio experienced extreme variance, reflecting shifting market sentiment. An initial high of 75.81 in 2017 suggests a valuation driven by high growth expectations. This ratio compressed significantly to 9.20 by 2019 as FCFE growth outpaced price movement. A subsequent surge to 25.47 in 2020 aligns with the share price peak, followed by a return to a more moderate 12.85 in 2021.
In summary, while the underlying fundamental cash flow performance improved linearly, the market valuation remained volatile. The recurring patterns of ratio expansion followed by contraction suggest that the share price frequently decoupled from the immediate cash flow generation before undergoing periodic corrections.
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