Etsy Inc., FCFE calculation

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net income	493,507)	349,246)	95,894)	77,491)	81,800)
Net noncash charges	134,161)	205,513)	101,032)	62,088)	(13,136)
Changes in operating assets and liabilities, net of acquisitions	23,883)	124,197)	9,994)	59,346)	(1,244)
Net cash provided by operating activities	651,551)	678,956)	206,920)	198,925)	67,420)
Purchases of property and equipment	(11,248)	(1,445)	(7,528)	(1,019)	(3,948)
Development of internal-use software	(16,922)	(5,665)	(7,750)	(19,537)	(9,208)
Proceeds from issuance of convertible senior notes	1,000,000)	650,000)	650,000)	345,000)	—)
Payment of debt issuance costs	(13,300)	(10,531)	(11,904)	(9,962)	—)
Purchase of capped calls	(85,000)	(74,685)	(76,180)	(34,224)	—)
Settlement of convertible senior notes	(43,900)	(137,168)	—)	—)	—)
Payments on finance lease obligations	(8,864)	(9,211)	(10,833)	(6,057)	(7,798)
Payments on facility financing obligation	—)	—)	—)	(10,164)	(5,883)
Free cash flow to equity (FCFE)	1,472,317)	1,090,251)	742,725)	462,962)	40,583)

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).

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Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Etsy Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	Etsy Inc. FCFE increased from 2019 to 2020 and from 2020 to 2021.

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.	85.72
Home Depot Inc.	17.74
Lowe’s Cos. Inc.	16.19
TJX Cos. Inc.	27.80
P/FCFE, Sector
Consumer Discretionary Distribution & Retail	66.21
P/FCFE, Industry
Consumer Discretionary	82.02

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.

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 price^1, 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.	—	55.66	63.35	—	—
Home Depot Inc.	15.41	14.99	16.61	—	—
Lowe’s Cos. Inc.	12.28	8.69	20.45	—	—
TJX Cos. Inc.	10.55	19.71	21.79	—	—
P/FCFE, Sector
Consumer Discretionary Distribution & Retail	59.10	38.09	38.19	—	—
P/FCFE, Industry
Consumer Discretionary	86.53	30.52	28.87	—	—

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.

² See details »

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.

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Valuation ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	Etsy Inc. P/FCFE ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.

Etsy Inc. (NASDAQ:ETSY)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical