Could the Recent Decline in Earnings Create a Chance for Yelp Investors in 2025?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 11 2025
0mins
Source: Yahoo Finance
Current Stock Performance: Yelp's stock has seen a decline of 4.8% in the past week and is down 22.5% year-to-date, despite a significant 51.0% gain over the last five years, leading investors to question whether to buy, sell, or hold.
Valuation Insights: Yelp is currently considered undervalued, with a Discounted Cash Flow analysis suggesting a fair value of $122.02 per share, indicating a 75.2% discount from its current price, and a Price-to-Earnings ratio of 12.8x compared to industry averages.
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Analyst Views on YELP
Wall Street analysts forecast YELP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for YELP is 33.29 USD with a low forecast of 30.00 USD and a high forecast of 40.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
2 Buy
3 Hold
2 Sell
Hold
Current: 27.500
Low
30.00
Averages
33.29
High
40.00
Current: 27.500
Low
30.00
Averages
33.29
High
40.00
About YELP
Yelp Inc. connects consumers with local businesses. The Company's advertising products enable businesses of all sizes to reach a large audience, advertise their products and drive conversion of their services. It offers a range of free and paid advertising products to businesses of all sizes, which include CPC Advertising (Yelp Ads), RepairPal Network and Multi-location Ad Products. Its business page products include Free Business Account, Upgrade Package, Branded Profile, Enhanced Profile, Verified License, Business Highlights, Yelp Connect, Logo and Nearby Jobs. In addition to its advertising products, it also offers features and consumer-interactive tools to facilitate transactions between consumers and the local businesses they find on Yelp. It offers subscription services, licensing payments for access to Yelp data and other non-advertising arrangements. It sells its advertising products online through its Website and Yelp for Business app, and indirectly through partners.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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