Common Stock Valuation Ratios (Price Multiples)
Quarterly Data
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Historical Valuation Ratios (Summary)
Etsy Inc., historical price multiples (quarterly data)
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
- Price to Earnings (P/E) Ratio
- The Price to Earnings ratio exhibited considerable volatility over the observed periods. Initially, it increased markedly from 37.64 to a peak near 110 in December 2018. Following this peak, the ratio showed a general downward trend with intermittent rises, dropping to its lowest point around 26.52 in March 2022 before a moderate uptick. This pattern indicates fluctuating investor expectations about earnings growth, with heightened valuation multiples especially notable during late 2018 and early 2020 periods, potentially reflecting market optimism or lower earnings base effects.
- Price to Operating Profit (P/OP) Ratio
- The Price to Operating Profit ratio closely mirrors the fluctuations seen in the P/E ratio but presents some distinctive features. After a steep rise to approximately 129 in early 2018, it declined substantially by late 2019, suggesting increased operating profitability or lower price levels. Another peak appeared in early 2020 exceeding 110, succeeded by a decline through 2022, reaching levels below 30. This trend indicates periods of significant market re-rating potentially influenced by operating profit variability or market sentiment adjustments.
- Price to Sales (P/S) Ratio
- The Price to Sales ratio showed an upward trajectory during 2018, peaking in late 2020 at over 16. This ratio indicates improved valuation relative to sales revenue, suggesting growing optimism about top-line growth or margin expansions. However, from early 2021 onwards, there is a clear downward trend, with the ratio falling to just above 5 by the third quarter of 2022. The decline may signal more cautious market outlook on sales growth or increased competitive pressures impacting revenue prospects.
- Price to Book Value (P/BV) Ratio
- The Price to Book Value ratio demonstrated substantial increases throughout the period up to late 2021, reaching an exceptionally high point above 64 in the fourth quarter of 2021. This sharp rise indicates that the market was valuing the company at large premiums relative to its book value, potentially due to high expected growth or intangible assets significance. After this peak, the ratio declined markedly through 2022, settling in the range of 17 to 23. The reversal suggests a reassessment of the company's asset valuation or normalization of growth expectations by investors.
- Summary of Trends and Insights
- Overall, the financial multiples display cyclical behavior with peaks in late 2018, early 2020, and late 2021 periods, reflecting shifts in market sentiment and fundamental performance. Valuation multiples tended to rise significantly during growth phases or periods of strong investor confidence and contracted approaching mid-2022, likely reflecting increased market caution, earnings normalization, or external economic factors affecting investor valuation benchmarks. The Price to Earnings and Price to Operating Profit ratios closely tracked each other, emphasizing the connection between earnings quality and valuation. Meanwhile, the Price to Sales and Price to Book Value ratios suggest evolving perspectives on revenue growth and asset valuation, respectively, with periods of heightened optimism followed by tempered expectations in recent quarters.
Price to Earnings (P/E)
Etsy Inc., historical P/E calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 125,688,316 | 126,608,897 | 127,119,018 | 127,032,946 | 126,780,745 | 126,576,797 | 127,102,598 | 126,049,276 | 126,090,966 | 119,327,613 | 118,677,964 | 117,949,068 | 118,488,696 | 120,459,900 | 120,184,386 | 119,566,393 | 120,460,043 | 119,753,433 | 119,475,520 | ||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||
| Net income (loss) (in thousands) | (963,068) | 73,123) | 86,109) | 161,557) | 89,930) | 98,254) | 143,766) | 148,538) | 91,761) | 96,425) | 12,522) | 31,291) | 14,801) | 18,223) | 31,579) | 41,251) | 19,894) | 3,379) | 12,967) | ||||||
| Earnings per share (EPS)2 | -5.11 | 3.24 | 3.43 | 3.88 | 3.79 | 3.81 | 3.78 | 2.77 | 1.84 | 1.30 | 0.65 | 0.81 | 0.89 | 0.92 | 0.80 | 0.65 | 0.67 | 0.73 | 0.80 | ||||||
| Share price1, 3 | 100.03 | 104.92 | 90.93 | 148.94 | 271.27 | 182.41 | 157.68 | 220.27 | 132.42 | 130.66 | 76.59 | 57.92 | 44.49 | 59.71 | 60.76 | 71.27 | 50.01 | 43.84 | 29.99 | ||||||
| Valuation Ratio | |||||||||||||||||||||||||
| P/E ratio4 | — | 32.34 | 26.52 | 38.34 | 71.58 | 47.87 | 41.71 | 79.50 | 71.97 | 100.56 | 118.30 | 71.24 | 49.80 | 64.83 | 75.99 | 109.97 | 74.38 | 60.42 | 37.64 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| P/E Ratio, Competitors5 | |||||||||||||||||||||||||
| Amazon.com Inc. | 93.17 | 118.45 | 59.05 | 48.08 | 65.12 | 57.25 | 65.00 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Home Depot Inc. | 26.76 | 22.50 | 22.81 | 24.51 | 23.56 | 26.04 | 24.24 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Lowe’s Cos. Inc. | 20.72 | 20.32 | 20.09 | 22.36 | 21.14 | 22.50 | 21.16 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| TJX Cos. Inc. | 31.03 | 35.26 | 53.90 | 881.78 | 103.90 | 92.86 | 38.61 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Data adjusted for splits and stock dividends.
2 Q3 2022 Calculation
EPS
= (Net income (loss)Q3 2022
+ Net income (loss)Q2 2022
+ Net income (loss)Q1 2022
+ Net income (loss)Q4 2021)
÷ No. shares of common stock outstanding
= (-963,068,000 + 73,123,000 + 86,109,000 + 161,557,000)
÷ 125,688,316 = -5.11
3 Closing price as at the filing date of Etsy Inc. Quarterly or Annual Report.
4 Q3 2022 Calculation
P/E ratio = Share price ÷ EPS
= 100.03 ÷ -5.11 = —
5 Click competitor name to see calculations.
The analysis of financial data over the examined periods reveals significant fluctuations and notable trends in valuation metrics and earnings performance.
- Share Price
- The share price demonstrated a general upward trajectory from early 2018 through late 2021, with a rise from approximately $30 to a peak exceeding $270 by the fourth quarter of 2021. This substantial increase reflects growing market confidence or improved company prospects during this timeframe. However, starting in early 2022, the share price experienced a marked decline, dropping below $105 by the third quarter. This reversal suggests a period of market correction, decreased investor sentiment, or response to underlying business challenges.
- Earnings per Share (EPS)
- EPS showed slight volatility with modest growth from Q1 2018 ($0.80) through Q4 2019 ($0.81). Beginning in 2020, EPS exhibited accelerated improvement, rising from $0.65 in Q1 2020 to a peak of approximately $3.88 in Q4 2021, indicating strong profitability expansion. Notably, in 2022, EPS sharply declined, turning negative at -$5.11 by Q3, which signals a substantial earnings downturn or extraordinary loss events during this period.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio fluctuated considerably, reflecting the interplay between share price and EPS movements. Earlier periods (2018-2019) showed elevated P/E ratios periodically surpassing 70 and even reaching nearly 110 at the end of 2018, indicative of high market expectations relative to earnings. During 2020 and 2021, P/E ratios generally remained volatile but trended lower by late 2021, consistent with rising EPS outpacing share price gains. In 2022, the P/E ratio decreased further to the mid-20s range, correlating with the decline in market price and negative earnings, rendering the ratio unusable or absent for some quarters due to negative EPS.
In summary, the company's financial data suggests a period of robust growth in valuation and earnings until late 2021, followed by a sharp reversal in both share price and profitability in 2022. The negative earnings per share in 2022 notably contrasts with prior performance, indicating a potential inflection point warranting further investigation into causative factors. The P/E ratio variability underscores changing market perceptions and earnings quality throughout the period.
Price to Operating Profit (P/OP)
Etsy Inc., historical P/OP calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 125,688,316 | 126,608,897 | 127,119,018 | 127,032,946 | 126,780,745 | 126,576,797 | 127,102,598 | 126,049,276 | 126,090,966 | 119,327,613 | 118,677,964 | 117,949,068 | 118,488,696 | 120,459,900 | 120,184,386 | 119,566,393 | 120,460,043 | 119,753,433 | 119,475,520 | ||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||
| Income (loss) from operations (in thousands) | (954,780) | 72,561) | 84,315) | 142,249) | 83,741) | 89,105) | 150,637) | 161,335) | 118,169) | 119,140) | 25,365) | 25,038) | 14,232) | 17,848) | 31,643) | 29,489) | 18,737) | 12,762) | 13,798) | ||||||
| Operating profit per share2 | -5.22 | 3.02 | 3.14 | 3.67 | 3.82 | 4.10 | 4.32 | 3.36 | 2.28 | 1.54 | 0.70 | 0.75 | 0.79 | 0.81 | 0.77 | 0.63 | 0.53 | 0.44 | 0.23 | ||||||
| Share price1, 3 | 100.03 | 104.92 | 90.93 | 148.94 | 271.27 | 182.41 | 157.68 | 220.27 | 132.42 | 130.66 | 76.59 | 57.92 | 44.49 | 59.71 | 60.76 | 71.27 | 50.01 | 43.84 | 29.99 | ||||||
| Valuation Ratio | |||||||||||||||||||||||||
| P/OP ratio4 | — | 34.70 | 28.94 | 40.62 | 70.94 | 44.47 | 36.49 | 65.48 | 58.03 | 84.84 | 110.20 | 76.97 | 56.55 | 73.61 | 78.83 | 113.95 | 94.74 | 100.43 | 128.91 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| P/OP Ratio, Competitors5 | |||||||||||||||||||||||||
| Amazon.com Inc. | 81.33 | 89.87 | 64.24 | 64.48 | 60.45 | 56.87 | 62.96 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Home Depot Inc. | 19.12 | 16.06 | 16.20 | 17.25 | 16.72 | 18.45 | 17.14 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Lowe’s Cos. Inc. | 14.46 | 12.77 | 12.57 | 13.52 | 12.50 | 15.21 | 14.04 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| TJX Cos. Inc. | 18.99 | 21.99 | 30.54 | 137.02 | 74.61 | 60.02 | 30.12 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Data adjusted for splits and stock dividends.
2 Q3 2022 Calculation
Operating profit per share
= (Income (loss) from operationsQ3 2022
+ Income (loss) from operationsQ2 2022
+ Income (loss) from operationsQ1 2022
+ Income (loss) from operationsQ4 2021)
÷ No. shares of common stock outstanding
= (-954,780,000 + 72,561,000 + 84,315,000 + 142,249,000)
÷ 125,688,316 = -5.22
3 Closing price as at the filing date of Etsy Inc. Quarterly or Annual Report.
4 Q3 2022 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 100.03 ÷ -5.22 = —
5 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals significant fluctuations in the share price, operating profit per share, and the price-to-operating profit ratio over the observed period.
- Share Price
- The share price exhibited a generally upward trend from early 2018 through late 2021, with notable peaks and troughs. Starting at $29.99 in March 2018, the price increased steadily, reaching a substantial peak of $271.27 in September 2021. After this peak, the share price declined sharply to $148.94 by December 2021, followed by further decreases to around $90-$104 during the first three quarters of 2022. This pattern indicates a period of strong growth followed by volatility and decline.
- Operating Profit per Share (OPPS)
- Operating profit per share followed an increasing trend from $0.23 in March 2018 to a peak of $4.32 in March 2021, suggesting improved operating profitability over this timeframe. After this peak, OPPS slightly decreased but remained relatively strong around $3.67 to $4.10 through the end of 2021. However, in 2022, operating profit per share fell sharply, culminating in a negative figure of -$5.22 by September 2022, signaling a material deterioration in operational profitability during the most recent quarters.
- Price-to-Operating Profit Ratio (P/OP)
- The P/OP ratio, which measures market valuation relative to operating profit per share, showed a declining trend from very high beginnings of over 100 in early 2018 to a notably lower multiple near 28.94 in March 2022. This downward trend reflects a market adjustment where share prices became more conservative relative to operating profits or where profits rose faster than prices initially. The ratio fluctuated somewhat, with spikes and troughs, such as a peak above 110 in March 2020 and low values below 40 at various points in 2021 and 2022. The absence of data for the last quarter suggests some discontinuity or volatility in this metric coinciding with the recent negative operating profit.
Overall, the data indicates a period of substantial growth and improved profitability from 2018 to early 2021, accompanied by increasing market valuations. This phase was followed by a period of declining profitability and share price correction in 2022, resulting in negative operating profit per share and more conservative valuation multiples. The recent negative operating profit per share is a sharp reversal from prior trends and may warrant further investigation into underlying operational challenges.
Price to Sales (P/S)
Etsy Inc., historical P/S calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 125,688,316 | 126,608,897 | 127,119,018 | 127,032,946 | 126,780,745 | 126,576,797 | 127,102,598 | 126,049,276 | 126,090,966 | 119,327,613 | 118,677,964 | 117,949,068 | 118,488,696 | 120,459,900 | 120,184,386 | 119,566,393 | 120,460,043 | 119,753,433 | 119,475,520 | ||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||
| Revenue (in thousands) | 594,469) | 585,135) | 579,266) | 717,139) | 532,429) | 528,900) | 550,646) | 617,355) | 451,478) | 428,737) | 228,055) | 269,998) | 197,947) | 181,095) | 169,339) | 200,028) | 150,366) | 132,387) | 120,912) | ||||||
| Sales per share2 | 19.70 | 19.07 | 18.55 | 18.33 | 17.58 | 16.97 | 16.11 | 13.69 | 10.93 | 9.43 | 7.39 | 6.94 | 6.32 | 5.82 | 5.43 | 5.05 | 4.48 | 4.14 | 3.89 | ||||||
| Share price1, 3 | 100.03 | 104.92 | 90.93 | 148.94 | 271.27 | 182.41 | 157.68 | 220.27 | 132.42 | 130.66 | 76.59 | 57.92 | 44.49 | 59.71 | 60.76 | 71.27 | 50.01 | 43.84 | 29.99 | ||||||
| Valuation Ratio | |||||||||||||||||||||||||
| P/S ratio4 | 5.08 | 5.50 | 4.90 | 8.12 | 15.43 | 10.75 | 9.78 | 16.09 | 12.11 | 13.86 | 10.36 | 8.35 | 7.04 | 10.26 | 11.20 | 14.12 | 11.16 | 10.59 | 7.70 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| P/S Ratio, Competitors5 | |||||||||||||||||||||||||
| Amazon.com Inc. | 2.10 | 2.83 | 2.65 | 3.41 | 3.73 | 3.80 | 4.17 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Home Depot Inc. | 2.89 | 2.37 | 2.38 | 2.39 | 2.34 | 2.58 | 2.37 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Lowe’s Cos. Inc. | 1.79 | 1.51 | 1.45 | 1.46 | 1.33 | 1.60 | 1.31 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| TJX Cos. Inc. | 1.81 | 2.05 | 2.15 | 2.48 | 2.33 | 1.96 | 1.77 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Data adjusted for splits and stock dividends.
2 Q3 2022 Calculation
Sales per share
= (RevenueQ3 2022
+ RevenueQ2 2022
+ RevenueQ1 2022
+ RevenueQ4 2021)
÷ No. shares of common stock outstanding
= (594,469,000 + 585,135,000 + 579,266,000 + 717,139,000)
÷ 125,688,316 = 19.70
3 Closing price as at the filing date of Etsy Inc. Quarterly or Annual Report.
4 Q3 2022 Calculation
P/S ratio = Share price ÷ Sales per share
= 100.03 ÷ 19.70 = 5.08
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibits substantial volatility with a general upward trajectory from early 2018 through 2021. Initially, the price increased from $29.99 in March 2018 to a peak of $271.27 in September 2021. After this peak, the share price declined sharply, falling to $90.93 by March 2022. Subsequently, a modest recovery occurred, with the share price reaching approximately $100 by the end of the third quarter 2022. This pattern indicates a period of strong growth followed by a notable correction.
- Sales Per Share Development
- Sales per share demonstrate a consistent and steady increase over the time period. Starting at $3.89 in March 2018, sales per share gradually rose to $19.7 by September 2022. This reflects sustained revenue growth on a per-share basis, with no indication of decline or stagnation. The growth pace accelerates notably after mid-2019, highlighting improved sales performance that continues through 2021 into 2022.
- Price-to-Sales (P/S) Ratio
- The P/S ratio reflects the relationship between share price and underlying sales metrics, showing notable fluctuations. It peaks at 16.09 in December 2020 and again at 15.43 in September 2021, implying that share prices were highly valued relative to sales during those periods. However, following these peaks, the P/S ratio experiences a sharp decline to near 5.0 levels by March to September 2022. This reduction suggests that the market-adjusted valuation of sales decreased substantially, potentially reflecting a market reassessment of growth expectations or risk.
- Overall Insights
- The combination of steady growth in sales per share with a highly variable share price resulted in significant volatility in the P/S ratio. The rapid increase in share price and P/S ratio up to late 2021 points to an optimistic market outlook, perhaps driven by strong growth prospects. The subsequent correction in share price and P/S ratio in 2022 indicates a shift toward more conservative valuation levels, despite continued sales growth. This scenario suggests that while operational performance improved consistently, market sentiment and valuation multiples were subject to pronounced cyclical adjustments.
Price to Book Value (P/BV)
Etsy Inc., historical P/BV calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 125,688,316 | 126,608,897 | 127,119,018 | 127,032,946 | 126,780,745 | 126,576,797 | 127,102,598 | 126,049,276 | 126,090,966 | 119,327,613 | 118,677,964 | 117,949,068 | 118,488,696 | 120,459,900 | 120,184,386 | 119,566,393 | 120,460,043 | 119,753,433 | 119,475,520 | ||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||
| Stockholders’ equity (deficit) (in thousands) | (606,242) | 581,295) | 676,867) | 628,619) | 533,622) | 530,753) | 683,774) | 742,424) | 666,667) | 524,175) | 406,847) | 406,634) | 389,262) | 442,301) | 420,013) | 400,898) | 394,619) | 370,091) | 384,487) | ||||||
| Book value per share (BVPS)2 | -4.82 | 4.59 | 5.32 | 4.95 | 4.21 | 4.19 | 5.38 | 5.89 | 5.29 | 4.39 | 3.43 | 3.45 | 3.29 | 3.67 | 3.49 | 3.35 | 3.28 | 3.09 | 3.22 | ||||||
| Share price1, 3 | 100.03 | 104.92 | 90.93 | 148.94 | 271.27 | 182.41 | 157.68 | 220.27 | 132.42 | 130.66 | 76.59 | 57.92 | 44.49 | 59.71 | 60.76 | 71.27 | 50.01 | 43.84 | 29.99 | ||||||
| Valuation Ratio | |||||||||||||||||||||||||
| P/BV ratio4 | — | 22.85 | 17.08 | 30.10 | 64.45 | 43.50 | 29.31 | 37.40 | 25.05 | 29.74 | 22.34 | 16.80 | 13.54 | 16.26 | 17.39 | 21.26 | 15.27 | 14.19 | 9.32 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| P/BV Ratio, Competitors5 | |||||||||||||||||||||||||
| Amazon.com Inc. | 7.67 | 10.46 | 9.44 | 11.60 | 14.19 | 14.68 | 16.93 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Home Depot Inc. | 412.02 | 165.73 | 192.67 | 95.58 | 191.69 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Lowe’s Cos. Inc. | — | — | 307.81 | 90.79 | 27.86 | 29.56 | 56.37 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| TJX Cos. Inc. | 12.85 | 13.82 | 13.27 | 13.68 | 13.99 | 14.17 | 13.72 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Data adjusted for splits and stock dividends.
2 Q3 2022 Calculation
BVPS = Stockholders’ equity (deficit) ÷ No. shares of common stock outstanding
= -606,242,000 ÷ 125,688,316 = -4.82
3 Closing price as at the filing date of Etsy Inc. Quarterly or Annual Report.
4 Q3 2022 Calculation
P/BV ratio = Share price ÷ BVPS
= 100.03 ÷ -4.82 = —
5 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several important trends regarding the company's market valuation and equity fundamentals over the observed period.
- Share Price
- The share price demonstrated significant growth from early 2018 through late 2021. Starting at approximately $30 at the end of Q1 2018, the share price rose steadily with notable acceleration during 2020 and 2021, peaking at $271.27 by Q3 2021. This represents a nearly ninefold increase from the initial recorded value. However, following this peak, the share price shows a marked decline, reducing to just above $100 by Q3 2022. Despite this pullback, the price remains well above the 2018 levels, indicating sustained investor interest albeit with heightened volatility.
- Book Value Per Share (BVPS)
- Book value per share exhibited a generally positive trajectory from 2018 through 2020, increasing from approximately $3.22 in Q1 2018 to a peak near $5.89 in Q4 2020. This indicates gradual strengthening of the company's net asset value on a per-share basis during this time. However, beginning in 2021, the BVPS fluctuated and showed a decline, falling to slightly above $4.00 by the end of 2021 and early 2022. Notably, there is a sharp negative swing to -$4.82 reported in Q3 2022, representing a significant deterioration in the company’s equity position or a potential accounting adjustment, which would warrant further investigation.
- Price-to-Book Value Ratio (P/BV)
- The price-to-book value ratio mirrored the movements in share price and book value but demonstrated extreme volatility and high valuation multiples throughout the period. Starting from a ratio near 9.3 in early 2018, it increased substantially, reaching highs above 60 by Q3 2021, indicative of high investor expectations relative to tangible equity. This peak coincides with the share price maximum and a dip in BVPS. Subsequently, the ratio contracted sharply to around 17 by mid-2022. The erratic changes in this ratio punctuate the volatility in market sentiment and the shifting balance between market value and book value per share.
In summary, the data reflect a period of rapid market capitalization growth through elevated share prices, particularly from 2020 through 2021, accompanied by moderate increases in book value per share. The dramatic reversal in share price and the negative book value per share at the latest point suggest emerging financial challenges or significant revaluation. The wide fluctuations in price-to-book ratios throughout underscore the substantial variability in investor perception relative to the underlying net asset value. These trends emphasize the importance of a deeper examination of the factors driving equity valuation and the company's financial health in recent quarters.