Etsy, Inc. (ETSY) Stock

Etsy, Inc. trades at a P/E ratio of 41.84, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 25.38 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 2.24 indicates a premium valuation even accounting for growth.

With a beta of 1.86, Etsy, Inc. is significantly more volatile than the market. For every 10% market move, this stock tends to move 19% in the same direction. Higher beta stocks offer greater potential returns but with increased risk. The price-to-book ratio of 21.42 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Etsy, Inc. achieves a profit margin of 6.38%, meaning it retains $6.38 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 12.20% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at -1224.00% and ROA at 9.66%, the company achieves moderate returns on invested capital.

Etsy, Inc.'s revenue grew by 2.40% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 39.70% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against INTERNET RETAIL industry averages for proper context.

Etsy, Inc. has a market capitalization of $6.1B, classifying it as a mid-cap stock ($2B-$10B). Mid-caps often represent companies in their growth phase, offering higher growth potential than large-caps but with more stability than small-caps. They can be attractive takeover targets and may become tomorrow's large-caps. With 98.71M shares outstanding, the company's ownership is relatively concentrated. As a participant in the INTERNET RETAIL industry, it competes with other firms in this sector.

Etsy, Inc.'s book value per share is -$11.20, while the current stock price is $57.10, resulting in a price-to-book (P/B) ratio of -5.10. Trading below book value can indicate the market perceives challenges ahead, or it might represent a value opportunity if the assets are quality and earnings can recover. Value investors often screen for P/B ratios below 1.0. As a common stock, this represents equity ownership with voting rights.

31 analysts cover ETSY with 29% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The bearish sentiment could create opportunity if analysts are wrong. The consensus target of $69.46 implies 21.6% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:3 Strong Buy, 6 Buy, 20 Hold, 2 Sell, 0The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.