Etsy, the e-commerce company geared toward small businesses is currently with a 13.4 billion USD market capitalisation.
In my view, Etsy's intrinsic value is 55 billion USD.
Why? Because Etsy is the only credible competitor to Amazon Inc, which has a market cap of 1.3 trillion USD as of today. Etsy used a handmade, vintage items and craft supplies niche to turn into a 2.5 billion USD yearly revenue run rate business. So Etsy's business is not so niche any more.
Etsy's Price/Earnings ratio is 37.32, while Amazon's Price/Earnings ratio is 114.66. And this is now, when Amazon's cloud business Amazon Web Services, the leading cloud computing business in the world is bringing in tens of billions of USD a year in revenue with a circa 20 % net profit margin.
At 10.63 % the quarterly year on year revenue growth rate of Etsy is higher than Amazon's 7.21 %.
All in all, Etsy does seem undervalued long-term, contrary to most listed technology stocks at present.
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