ETSYCAUTIOUS

ETSY P/E Ratio Analysis

35.5x

Updated 201h ago·SEC filings & market data

Key Takeaway

The current P/E ratio of 26.1x means investors are paying $26.10 for every $1 of Etsy’s earnings over the past year — a common measure of how expensive the stock is relative to its profits.

Sector Performance

75th percentile

ETSY

35.5x

Sector Median

23.1x

Sector Avg

33.7x

Prior Period

26.1x(Jul 2026)

↓ Declining

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Deep Analysis

The current P/E ratio of 26.1x means investors are paying $26.10 for every $1 of Etsy’s earnings over the past year — a common measure of how expensive the stock is relative to its profits.

Compared to the sector median of 24.5x, Etsy trades at a premium, ranking in the 55th percentile among its peers. Trend data is unavailable: the year-over-year and quarter-over-quarter changes are both listed as N/A, and no values exist for the last eight quarters. Because the P/E is above the sector median but no trend direction is known, the single data point suggests the stock is priced higher than its typical competitor without evidence of recent movement to justify that premium. This elevated level, combined with the lack of trend information, implies a potential risk of overvaluation if earnings do not grow to support the multiple. The P/E ratio supports the overall CAUTIOUS verdict, as the premium valuation offers no additional margin of safety.

Frequently Asked Questions

What does the P/E Ratio tell investors about ETSY?

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

How is the P/E Ratio calculated?

P/E Ratio is calculated as: Price / EPS.

Who are ETSY's closest peers by P/E Ratio?

The closest peers by P/E Ratio include: WELL (102.4x), IAC (104.9x), FORM (108.1x), MCHP (113.5x), MTSI (118.9x).

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The Formula

Price / EPS

Why It Matters

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.