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 analysis of the financial data reveals significant positive trends in the cash flow metrics over the five-year period ending in 2021.
- Net cash provided by operating activities
- There is a notable increase from 67,420 thousand US dollars in 2017 to 651,551 thousand US dollars in 2021. This represents a nearly tenfold rise over the period, with a particularly sharp jump between 2019 and 2020. The data indicates strong and growing operational cash generation capacity, suggesting improved operational efficiency and revenue growth.
- Free cash flow to equity (FCFE)
- This metric shows an even more pronounced upward trajectory, rising from 40,583 thousand US dollars in 2017 to 1,472,317 thousand US dollars in 2021. This growth indicates a consistent increase in the cash available to shareholders after the company has met its capital expenditure needs. The increasing FCFE highlights the company's improving ability to generate surplus cash, which could support dividends, share buybacks, or debt reduction.
Overall, both operating cash flow and free cash flow to equity have demonstrated robust and sustained growth. This trend reflects strengthened operational performance and enhanced financial flexibility over the analyzed period.
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$) | |
| Free cash flow to equity (FCFE) (in thousands) | 1,472,317) |
| FCFE per share | 11.71 |
| Current share price (P) | 100.03 |
| Valuation Ratio | |
| P/FCFE | 8.54 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Amazon.com Inc. | 82.22 |
| Home Depot Inc. | 13.85 |
| Lowe’s Cos. Inc. | 16.67 |
| TJX Cos. Inc. | 32.82 |
| P/FCFE, Sector | |
| Consumer Discretionary Distribution & Retail | 78.56 |
| P/FCFE, Industry | |
| Consumer Discretionary | 96.02 |
Based on: 10-K (reporting date: 2021-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Etsy Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 127,032,946 | 126,049,276 | 117,949,068 | 119,566,393 | 121,502,754 | |
| Selected Financial Data (US$) | ||||||
| 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. | — | 55.66 | — | — | — | |
| Home Depot Inc. | 15.41 | 14.99 | — | — | — | |
| Lowe’s Cos. Inc. | 12.28 | 8.69 | — | — | — | |
| TJX Cos. Inc. | 10.55 | 19.71 | — | — | — | |
| P/FCFE, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 59.10 | 38.09 | — | — | — | |
| P/FCFE, Industry | ||||||
| Consumer Discretionary | 82.92 | 32.04 | — | — | — | |
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.
- Share Price
- The share price displayed considerable volatility over the observed period. It increased significantly from $25.32 at the end of 2017 to a peak of $220.27 by the end of 2020. However, this peak was followed by a decline to $148.94 by the end of 2021, indicating a notable correction after rapid growth.
- Free Cash Flow to Equity (FCFE) per Share
- The FCFE per share demonstrated a consistent upward trend throughout the period. Starting at $0.33 in 2017, it rose substantially each year, reaching $11.59 by the end of 2021. This progression reflects an improving ability of the company to generate cash flow available to equity shareholders, suggesting strengthening financial health and operational efficiency.
- Price to FCFE (P/FCFE) Ratio
- The P/FCFE ratio showed considerable fluctuation. Initially, the ratio was very high at 75.81 in 2017, indicating a premium valuation relative to free cash flow. It then declined sharply to 9.2 by the end of 2019, reflecting a more moderate valuation or increasing free cash flow relative to price. The ratio spiked again to 25.47 in 2020, coinciding with the peak share price, before dropping to 12.85 in 2021. These movements suggest shifts in market sentiment and valuation multiples, influenced by changes in both share price and cash flow generation.
- Overall Insights
- Over the analyzed timeframe, the company experienced significant growth in fundamental cash flow measures, paralleled by volatile share price movements and valuation ratios. Despite the pronounced price correction after 2020, the continual rise in FCFE per share indicates underlying operational improvement, while valuation multiples have fluctuated in response to market dynamics and investor perception.