ETSYCAUTIOUS

PEG Ratio

0.11x

Updated 104h ago

Sector Performance

10th percentile

ETSY

0.11x

Sector Median

0.94x

Sector Avg

3.01x

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Deep Analysis

# PEG Ratio Analysis - ETSY

ETSY's PEG ratio of 0.49x indicates the stock is trading at less than half the valuation multiple of its earnings growth rate, suggesting the market is pricing in modest growth expectations relative to current valuation. The company trades well below the sector median of 1.00x, placing it at the 33rd percentile among peers—meaning 67% of comparable companies command higher PEG valuations. The metric has remained flat at 0.49x over the last two quarters, showing no improvement in this relative valuation measure. While a sub-1.0 PEG ratio typically suggests undervaluation, ETSY's below-median standing reflects investor skepticism about growth prospects despite an attractive price-to-growth relationship. Investors should note that this valuation discount warrants examination of whether it reflects genuine opportunity or justified caution about the company's growth trajectory.

Frequently Asked Questions

What does the PEG Ratio tell investors about ETSY?

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

How is the PEG Ratio calculated?

PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.

Who are ETSY's closest peers by PEG Ratio?

The closest peers by PEG Ratio include: NUE (0.06x), VLO (0.06x), LNC (0.05x), NKE (0.05x), NCLH (0.05x).

The Formula

P/E Ratio / EPS Growth Rate

Why It Matters

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

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ETSY

0.11x

Sector Median

0.94x

Sector Avg

3.01x

How ETSY's PEG Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.