YELP PE Ratio & Valuation,Is YELP Overvalued

YELP Relative Valuation

YELP's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, YELP is overvalued; if below, it's undervalued.

Historical Valuation

Yelp Inc (YELP) is now in the Undervalued zone, suggesting that its current forward PE ratio of 7.72 is considered Undervalued compared with the five-year average of 13.09. The fair price of Yelp Inc (YELP) is between 60.64 to 87.86 according to relative valuation methord. Compared to the current price of 30.52 USD , Yelp Inc is Undervalued By 49.67%.

Relative Value

Fair Zone

60.64-87.86

Current Price：30.52

49.67%

Undervalued

7.72

4.42

EV/EBITDA

Yelp Inc. (YELP) has a current EV/EBITDA of 4.42. The 5-year average EV/EBITDA is 7.40. The thresholds are as follows: Strongly Undervalued below 3.01, Undervalued between 3.01 and 5.21, Fairly Valued between 9.60 and 5.21, Overvalued between 9.60 and 11.80, and Strongly Overvalued above 11.80. The current Forward EV/EBITDA of 4.42 falls within the Undervalued range.

8.04

EV/EBIT

Yelp Inc. (YELP) has a current EV/EBIT of 8.04. The 5-year average EV/EBIT is 4117.01. The thresholds are as follows: Strongly Undervalued below -31378.99, Undervalued between -31378.99 and -13630.99, Fairly Valued between 21865.02 and -13630.99, Overvalued between 21865.02 and 39613.02, and Strongly Overvalued above 39613.02. The current Forward EV/EBIT of 8.04 falls within the Historic Trend Line -Fairly Valued range.

1.26

Yelp Inc. (YELP) has a current PS of 1.26. The 5-year average PS is 1.93. The thresholds are as follows: Strongly Undervalued below 1.08, Undervalued between 1.08 and 1.51, Fairly Valued between 2.35 and 1.51, Overvalued between 2.35 and 2.78, and Strongly Overvalued above 2.78. The current Forward PS of 1.26 falls within the Undervalued range.

7.11

P/OCF

Yelp Inc. (YELP) has a current P/OCF of 7.11. The 5-year average P/OCF is 9.38. The thresholds are as follows: Strongly Undervalued below 4.14, Undervalued between 4.14 and 6.76, Fairly Valued between 12.00 and 6.76, Overvalued between 12.00 and 14.61, and Strongly Overvalued above 14.61. The current Forward P/OCF of 7.11 falls within the Historic Trend Line -Fairly Valued range.

10.67

P/FCF

Yelp Inc. (YELP) has a current P/FCF of 10.67. The 5-year average P/FCF is 10.93. The thresholds are as follows: Strongly Undervalued below 4.51, Undervalued between 4.51 and 7.72, Fairly Valued between 14.14 and 7.72, Overvalued between 14.14 and 17.35, and Strongly Overvalued above 17.35. The current Forward P/FCF of 10.67 falls within the Historic Trend Line -Fairly Valued range.

Yelp Inc (YELP) has a current Price-to-Book (P/B) ratio of 2.58. Compared to its 3-year average P/B ratio of 3.36 , the current P/B ratio is approximately -23.12% higher. Relative to its 5-year average P/B ratio of 3.35, the current P/B ratio is about -22.86% higher. Yelp Inc (YELP) has a Forward Free Cash Flow (FCF) yield of approximately 16.59%. Compared to its 3-year average FCF yield of 10.33%, the current FCF yield is approximately 60.55% lower. Relative to its 5-year average FCF yield of 8.92% , the current FCF yield is about 86.05% lower.

2.58

P/B

Median3y

3.36

Median5y

3.35

16.59

FCF Yield

Median3y

10.33

Median5y

8.92

Competitors Valuation Multiple

The average P/S ratio for YELP's competitors is 2.08, providing a benchmark for relative valuation. Yelp Inc Corp (YELP) exhibits a P/S ratio of 1.26, which is -39.44% above the industry average. Given its robust revenue growth of 4.36%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of YELP decreased by 21.14% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 360.34M to 376.04M.

The secondary factor is the Margin Expansion, contributed -1.97%to the performance.

Overall, the performance of YELP in the past 1 year is driven by Revenue Growth. Which is more sustainable.

4.36%

360.34M → 376.04M

Revenue Growth

-1.97%

10.67 → 10.46

Margin Expansion

-23.53%

17.77 → 13.59

P/E Change

-21.14%

38.70 → 30.52

Mkt Cap Growth

People Also Watch

Frequently Asked Questions

Is Yelp Inc (YELP) currently overvalued or undervalued?

What is Yelp Inc (YELP) fair value?

YELP's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Yelp Inc (YELP) is between 60.64 to 87.86 according to relative valuation methord.

How does YELP's valuation metrics compare to the industry average?

What is the current P/B ratio for Yelp Inc (YELP) as of Dec 15 2025?

As of Dec 15 2025, Yelp Inc (YELP) has a P/B ratio of 2.58. This indicates that the market values YELP at 2.58 times its book value.

What is the current FCF Yield for Yelp Inc (YELP) as of Dec 15 2025?

As of Dec 15 2025, Yelp Inc (YELP) has a FCF Yield of 16.59%. This means that for every dollar of Yelp Inc’s market capitalization, the company generates 16.59 cents in free cash flow.

What is the current Forward P/E ratio for Yelp Inc (YELP) as of Dec 15 2025?

As of Dec 15 2025, Yelp Inc (YELP) has a Forward P/E ratio of 7.72. This means the market is willing to pay $7.72 for every dollar of Yelp Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Yelp Inc (YELP) as of Dec 15 2025?

As of Dec 15 2025, Yelp Inc (YELP) has a Forward P/S ratio of 1.26. This means the market is valuing YELP at $1.26 for every dollar of expected revenue over the next 12 months.

YELP Valuation