ETSY — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($52.43)
DCF	$76.86	+46.6%
Graham Number	—	—
Reverse DCF	—	implied g: -0.2%
DDM	—	—
EV/EBITDA	$52.62	+0.4%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $517.30M

Near-term growth (yrs 1–5)(%)Rev: 3.5% / EPS: -7.1%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.83%

Computed WACC: 8.83%

Cost of equity (Re)14.12%(Rf 4.30% + β 1.78 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)62.52%

Debt weight (D/V)37.48%

Results

Intrinsic Value / share$79.36

Current Price$52.43

Upside / Downside+51.4%

Net Debt (used)$1.50B

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$77.65	$96.42	$118.25	$143.52	$172.62
8.0%	$61.14	$76.24	$93.79	$114.07	$137.40
9.0%	$49.70	$62.27	$76.86	$93.70	$113.05
10.0%	$41.30	$52.03	$64.45	$78.78	$95.22
11.0%	$34.86	$44.19	$54.97	$67.38	$81.61

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $1.48

Book Value / share($)Yahoo: $-11.32

Results

Graham Number requires positive EPS and positive Book Value per share. BVPS is zero or negative.

Graham Number—

Current Price$52.43

Margin of Safety—

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.83%

Terminal growth rate(%)

Computed WACC: 8.83%

Cost of equity (Re)14.12%(Rf 4.30% + β 1.78 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)62.52%

Debt weight (D/V)37.48%

Results

Current Price$52.43

Implied Near-term FCF Growth-0.7%

Historical Revenue Growth3.5%

Historical Earnings Growth-7.1%

Base FCF (TTM)$517.30M

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: —

Dividend growth rate (g)(%)

Required return (r)(%)

Results

This company does not pay a dividend. DDM is not applicable — the intrinsic value shown uses D0 = $0 unless you enter a hypothetical dividend above.

DDM Intrinsic Value / share—

Current Price$52.43

Upside / Downside—

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $418.86M

Target EV/EBITDA multipleCurrent: 16.0×

Net Debt($B)Default: $1.50B

Results

Implied Equity Value / share$52.62

Current Price$52.43

Upside / Downside+0.4%

Implied EV$6.69B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	$1.50B	$1.50B	$1.50B	$1.50B	$1.50B
12.0x	$35.65	$35.65	$35.65	$35.65	$35.65
14.0x	$44.14	$44.14	$44.14	$44.14	$44.14
16.0x	$52.62	$52.62	$52.62	$52.62	$52.62
18.0x	$61.11	$61.11	$61.11	$61.11	$61.11
20.0x	$69.60	$69.60	$69.60	$69.60	$69.60

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