Etsy Current Valuation vs. Cash Per Share

3E2 Stock  EUR 54.48  2.03  3.87%   
Based on the key profitability measurements obtained from Etsy's financial statements, Etsy Inc may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Etsy's ability to earn profits and add value for shareholders.
For Etsy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Etsy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Etsy Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Etsy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Etsy Inc over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Etsy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Etsy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Etsy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Etsy Inc Cash Per Share vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Etsy's current stock value. Our valuation model uses many indicators to compare Etsy value to that of its competitors to determine the firm's financial worth.
Etsy Inc is the top company in current valuation category among its peers. It also is number one stock in cash per share category among its peers . The ratio of Current Valuation to Cash Per Share for Etsy Inc is about  3,236,488,709 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Etsy's earnings, one of the primary drivers of an investment's value.

Etsy Current Valuation vs. Competition

Etsy Inc is the top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Specialty Retail industry is presently estimated at about 134.85 Billion. Etsy retains roughly 17.02 Billion in current valuation claiming about 13% of equities listed under Specialty Retail industry.

Etsy Cash Per Share vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Etsy

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
17.02 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Cash per Share is a ratio of current cash on hands or in the banks of the company to a total number of shares outstanding. It is used to determine a firm's liquidity and is a good indicator of the overall financial health of a company. Value investors often compare this ratio to the current stock quote, and if it exceeds the stock price they would invest in it.

Etsy

Cash Per Share

 = 

Total Cash

Average Shares

 = 
5.26 X
Companies with high Cash per Share ratio will be considered as an attractive investment by most investors. In most industries if you can single out an equity instrument trading below its cash per share value, you have a bargain and should consider buying it. Finding the stocks traded below their cash value, therefore, can be a good starting point for investors using strategies based on fundamentals.

Etsy Cash Per Share Comparison

Etsy is currently under evaluation in cash per share category among its peers.

Etsy Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Etsy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Etsy will eventually generate negative long term returns. The profitability progress is the general direction of Etsy's change in net profit over the period of time. It can combine multiple indicators of Etsy, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Etsy, Inc. operates Etsy.com, an online market place for buyers and sellers to sell goods primarily in the United States, United Kingdom, Canada, Australia, France, and Germany. Etsy, Inc. was founded in 2005 and is headquartered in Brooklyn, New York. ETSY INC operates under Specialty Retail classification in Germany and is traded on Frankfurt Stock Exchange. It employs 950 people.

Etsy Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Etsy. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Etsy position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Etsy's important profitability drivers and their relationship over time.

Use Etsy in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Etsy position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Etsy will appreciate offsetting losses from the drop in the long position's value.

Etsy Pair Trading

Etsy Inc Pair Trading Analysis

The ability to find closely correlated positions to Etsy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Etsy when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Etsy - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Etsy Inc to buy it.
The correlation of Etsy is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Etsy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Etsy Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Etsy can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Etsy position

In addition to having Etsy in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Consumer Staples ETFs Thematic Idea Now

Consumer Staples ETFs
Consumer Staples ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Consumer Staples ETFs theme has 13 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Consumer Staples ETFs Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Etsy Stock

When determining whether Etsy Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Etsy's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Etsy Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Etsy Inc Stock:
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You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
To fully project Etsy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Etsy Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Etsy's income statement, its balance sheet, and the statement of cash flows.
Potential Etsy investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Etsy investors may work on each financial statement separately, they are all related. The changes in Etsy's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Etsy's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.