ETSYCAUTIOUS

ETSY EV/EBITDA Analysis

21.1x

Updated 201h ago·SEC filings & market data

Key Takeaway

ETSY's current EV/EBITDA of 21.2x means that for every dollar of earnings before interest, taxes, depreciation, and amortization, the market values the entire company (debt plus equity) at $21.20 — a high multiple that indicates investors are paying a premium for each unit of operating profit.

Sector Performance

76th percentile

ETSY

21.1x

Sector Median

13.6x

Sector Avg

-30.9x

Prior Period

21.3x(Jul 2026)

→ Stable

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Deep Analysis

This sits well above the sector median of 13.6x, placing ETSY in the 77th percentile among its peers, meaning it is more expensive than roughly three-quarters of comparable companies. The metric has been increasing over the last eight quarters, with a quarter-over-quarter rise of +0.4% and no year-over-year change available. A high valuation combined with a rising trend suggests that the stock carries elevated risk: any slowdown in growth or earnings could lead to a sharper compression in the multiple. This analysis directly supports the overall CAUTIOUS verdict, as the premium multiple and upward trajectory imply limited margin of safety relative to peers.

Frequently Asked Questions

What does the EV/EBITDA tell investors about ETSY?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

Who are ETSY's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: SMTC (76.6x), SHOP (80.2x), OKTA (83.5x), TEAM (101.4x), STEM (102.7x).

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Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.