ETSY FCF Yield Analysis
Updated 201h ago·SEC filings & market data
Key Takeaway
At 8.3%, Etsy's free cash flow yield means that for every $100 you invest in the stock, the company generates $8.30 in free cash flow (cash from operations minus capital spending) — a useful gauge of value and financial health.
Sector Performance
80th percentileETSY
8.0%
Sector Median
4.2%
Sector Avg
9.2%
Prior Period
8.3%(Jul 2026)
Deep Analysis
At 8.3%, Etsy's free cash flow yield means that for every $100 you invest in the stock, the company generates $8.30 in free cash flow (cash from operations minus capital spending) — a useful gauge of value and financial health.
This is well above the sector median of 4.1%, placing Etsy in the 81st percentile among its peers, indicating a relatively attractive cash return compared to similar companies. However, the metric is on a decreasing trend over the last eight quarters, with a quarter-over-quarter decline of -1.2% (year-over-year change is not available). The combination of a still-high yield but a consistent downward trajectory suggests that while the stock offers a current cash-flow advantage, the erosion in yield may signal falling cash generation or rising valuation, increasing investment risk. This pattern supports the overall CAUTIOUS verdict, as a declining free cash flow yield often precedes reduced shareholder returns or financial strain, warranting a careful approach.
Frequently Asked Questions
What does the FCF Yield tell investors about ETSY?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
Who are ETSY's closest peers by FCF Yield?
The closest peers by FCF Yield include: JACK (23.5%), BBWI (23.7%), YELP (25.7%), MET (27.9%), WIX (29.2%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
Master ETSY's Valuation
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View full ETSY research report →ETSY
8.0%
Sector Median
4.2%
Sector Avg
9.2%
How ETSY's FCF Yield compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.