ETSYCAUTIOUS

EV/EBITDA

21.2x

Updated 104h ago

Sector Performance

77th percentile

ETSY

21.2x

Sector Median

13.7x

Sector Avg

18.7x

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Deep Analysis

Etsy’s current EV/EBITDA of 21.2x means that for every dollar of its earnings before interest, taxes, depreciation, and amortization (EBITDA), the market values the company at $21.20 including its debt.

That ratio sits well above the sector median of 13.6x, placing Etsy in the 77th percentile among its peers — meaning 77% of comparable companies have a lower multiple. The metric has been increasing over the last eight quarters, rising 3.0% quarter-over-quarter (year-over-year change is not available). A high and rising EV/EBITDA suggests investors are paying a growing premium for each unit of earnings, which can signal elevated valuation expectations and reduced margin for error. This combination of a level far above the sector median and an upward trend points to higher investment risk, as any shortfall in earnings would likely amplify a valuation correction. The CAUTIOUS verdict is therefore supported: the elevated and increasing multiple aligns with a view that the stock’s price already reflects optimistic assumptions.

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: LSPD (-24.2x), BRZE (-24.5x), EVGO (-25.7x), NIO (-36.8x), SNAP (-38.8x).

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.