Etsy Has The Potential To More Than Double From Here

Plenty of great articles have been written about what Etsy Inc (ETSY) does and what catalysts can drive its growth, as well as the risks that are associated with the company. 

​In this article, we want to focus more on the deep potential value hidden in Etsy from a purely fundamental point of view, rather than talk about things that have already been talked about. ​

Here are the main points of this report:
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• Our forecasts are based purely on fundamentals. 
• Our projections are not based on hype or an unrealistic extrapolation of the success witnessed in 2020. 
• Etsy has a large enough margin of safety for changing market conditions. ​​

Valuation

To value Etsy, we will use a discounted cash flow model. Forecasting is not easy and it's difficult to be precise. However, the point of forecasting is not to be right but to be reasonable. Our projections are not based on hype or an unrealistic extrapolation of the success witnessed in 2020. Instead, projections are based on the company's fundamentals. We try to determine what growth rates the company can fundamentally sustain up until 2025 and then transition the company to a "mature phase". 
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We will begin with the growth rate we expect for fiscal year 2021. The first thing we need is to...read more

*This is a premium seeking alpha article, so we can’t fully post it here.*   ​

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