DCF Tool

ETSY

Etsy Inc – All Other Miscellaneous Textile Product Mills
etsy is a marketplace where people around the world connect, both online and offline, to make, sell and buy unique goods. the heart and soul of etsy is our global community: the creative entrepreneurs who use etsy to sell what they make or curate, the shoppers looking for things they can’t find anywhere else, the manufacturers who partner with etsy sellers to help them grow, and the etsy employees who maintain and nurture our marketplace. our mission is to keep commerce human. people make etsy possible. we provide a meaningful space for sellers to turn their creative passions into opportunity. we enable buyers to discover unique items made with care. and we treat our employees and our community with respect. we’re here because the world needs less of the same and more of the special. dedication to our mission is at the core of our identity. it guides our day-to-day decisions while inspiring us to think big for the long term. it reflects what makes our marketplace so special and our com
Analysis Results
Intrinsic Value $802.03
Latest Price $82.04
Relative Value 90% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 51.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 51.8%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 0.68 0.657
2024 1.03 0.963
2025 1.57 1.41
2026 2.38 2.07
2027 3.61 3.03
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 108 billion. This corresponds to a present value of 87.9 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 8.14 billion. Adding in the terminal value gives a total present value of 96.0 billion.

There are presently 120.0 million outstanding shares, so the intrinsic value per share is 802.03.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,513,743,000
Current Cash 1,171,691,000
Current Liabilities 631,755,000
Current Debt 4,731,000
Non-Cash Working Capital (NCWC) -284,972,000
Change in NCWC -28,691,000
EBIT 386,462,000
Tax Provision 32,310,000
Depreciation and Amortization 96,702,000
Capital Expenditure -37,199,000
Unlevered Free Cash Flow 417,274,000
Current Assets 1,341,501,000
Current Cash 984,612,000
Current Liabilities 615,588,000
Current Debt 2,418,000
Non-Cash Working Capital (NCWC) -256,281,000
Change in NCWC -35,717,000
EBIT 465,732,000
Tax Provision -21,853,000
Depreciation and Amortization 74,267,000
Capital Expenditure -30,107,000
Unlevered Free Cash Flow 474,175,000
Current Assets 1,894,781,000
Current Cash 1,669,218,000
Current Liabilities 454,664,000
Current Debt 8,537,000
Non-Cash Working Capital (NCWC) -220,564,000
Change in NCWC -144,097,000
EBIT 424,009,000
Tax Provision 16,463,000
Depreciation and Amortization 58,189,000
Capital Expenditure -7,990,000
Unlevered Free Cash Flow 311,023,528
Current Assets 921,038,000
Current Cash 817,252,000
Current Liabilities 188,528,000
Current Debt 8,275,000
Non-Cash Working Capital (NCWC) -76,467,000
Change in NCWC -24,291,000
EBIT 88,761,000
Tax Provision -15,248,000
Depreciation and Amortization 48,031,000
Capital Expenditure -15,278,000
Unlevered Free Cash Flow 97,223,000
Current Assets 680,289,000
Current Cash 624,287,000
Current Liabilities 112,062,000
Current Debt 3,884,000
Non-Cash Working Capital (NCWC) -52,176,000
Change in NCWC -54,211,000
EBIT 74,786,000
Tax Provision -22,413,000
Depreciation and Amortization 26,742,000
Capital Expenditure -20,556,000
Unlevered Free Cash Flow 26,761,000
Current Assets 439,264,000
Current Cash 340,550,000
Current Liabilities 102,477,000
Current Debt 5,798,000
Non-Cash Working Capital (NCWC) 2,035,000
Change in NCWC -9,732,000
EBIT 15,058,000
Tax Provision -49,535,000
Depreciation and Amortization 27,197,000
Capital Expenditure -13,156,000
Unlevered Free Cash Flow 19,367,000
Current Assets 371,032,000
Current Cash 282,086,000
Current Liabilities 84,008,000
Current Debt 6,829,000
Non-Cash Working Capital (NCWC) 11,767,000
Change in NCWC 20,089,000
EBIT 17,577,000
Tax Provision 27,025,000
Depreciation and Amortization 22,525,000
Capital Expenditure -47,750,000
Unlevered Free Cash Flow 12,441,000
Current Assets 359,054,000
Current Cash 292,864,000
Current Liabilities 80,122,000
Current Debt 5,610,000
Non-Cash Working Capital (NCWC) -8,322,000
Change in NCWC -9,774,000
EBIT -1,884,000
Tax Provision 26,069,000
Depreciation and Amortization 18,550,000
Capital Expenditure -20,835,000
Unlevered Free Cash Flow -13,943,000
Current Assets 129,993,000
Current Cash 88,843,000
Current Liabilities 41,453,000
Current Debt 1,755,000
Non-Cash Working Capital (NCWC) 1,452,000
Change in NCWC -2,024,000
EBIT -6,251,000
Tax Provision 4,983,000
Depreciation and Amortization 17,223,000
Capital Expenditure -9,584,000
Unlevered Free Cash Flow -636,000

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.