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P Pitch Archive Stock pitches across investing competitions
← Winter 2020

Etsy Inc

ETSY pitch long Neuberger Berman ESG Challenge Team

Thesis

We project a higher growth in the number of buyers for Etsy, estimating a low-twenties CAGR compared to the market's mid-teens CAGR. Our valuation suggests a target price of $86 based on a forward EV/EBITDA multiple of 13x, indicating a potential 76% return over four years.

Did it work?

worked confidence: high

The long thesis targeted a 76% return over four years to a $86 price target. With 89 months elapsed, the stock is up 120%, well above the stated target return. The growth thesis played out and the price substantially exceeded the valuation target.