Etsy: Hand-Crafted, A Bullish Case Despite Debt


  • I believe buying Etsy at 10x forward free cash flow is a fair entry point.
  • Despite Etsy’s significant debt, its substantial and stable free cash flow makes it an attractive investment.
  • If Etsy reduces its debt, it could become an even more attractive acquisition target, boosting its overall valuation.

Woman buying custom and hand made jewelry online


Investment Thesis

Etsy (NASDAQ:ETSY) isn’t a blemish-free investment thesis, but overall much of the concerns have already been priced in.

The bull case can be surmised down to 2 considerations. Etsy’s active customers are up 1.9% y/y, showing that demand for its

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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