YELP Valuation

Yelp Inc

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31.520

+0.13(0.414%)1D

Overview
Forecast
Valuation
Earnings

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 8.13 is considered Undervalued compared with the five-year average of 13.80. The fair price of Yelp Inc (YELP) is between 61.05 to 89.40 according to relative valuation methord. Compared to the current price of 31.52 USD , Yelp Inc is Undervalued By 48.37%.

Relative Value

Fair Zone

61.05-89.40

Current Price：31.52

48.37%

Undervalued

8.13

Trailing

Forward

4.81

EV/EBITDA

Yelp Inc. (YELP) has a current EV/EBITDA of 4.81. The 5-year average EV/EBITDA is 7.70. The thresholds are as follows: Strongly Undervalued below 3.24, Undervalued between 3.24 and 5.47, Fairly Valued between 9.92 and 5.47, Overvalued between 9.92 and 12.15, and Strongly Overvalued above 12.15. The current Forward EV/EBITDA of 4.81 falls within the Undervalued range.

9.26

EV/EBIT

Yelp Inc. (YELP) has a current EV/EBIT of 9.26. The 5-year average EV/EBIT is 4106.48. The thresholds are as follows: Strongly Undervalued below -31409.65, Undervalued between -31409.65 and -13651.58, Fairly Valued between 21864.55 and -13651.58, Overvalued between 21864.55 and 39622.61, and Strongly Overvalued above 39622.61. The current Forward EV/EBIT of 9.26 falls within the Historic Trend Line -Fairly Valued range.

1.33

Yelp Inc. (YELP) has a current PS of 1.33. The 5-year average PS is 1.97. The thresholds are as follows: Strongly Undervalued below 1.16, Undervalued between 1.16 and 1.56, Fairly Valued between 2.37 and 1.56, Overvalued between 2.37 and 2.77, and Strongly Overvalued above 2.77. The current Forward PS of 1.33 falls within the Undervalued range.

7.05

P/OCF

Yelp Inc. (YELP) has a current P/OCF of 7.05. The 5-year average P/OCF is 9.73. The thresholds are as follows: Strongly Undervalued below 4.18, Undervalued between 4.18 and 6.95, Fairly Valued between 12.50 and 6.95, Overvalued between 12.50 and 15.28, and Strongly Overvalued above 15.28. The current Forward P/OCF of 7.05 falls within the Historic Trend Line -Fairly Valued range.

6.45

P/FCF

Yelp Inc. (YELP) has a current P/FCF of 6.45. The 5-year average P/FCF is 11.47. The thresholds are as follows: Strongly Undervalued below 3.94, Undervalued between 3.94 and 7.70, Fairly Valued between 15.23 and 7.70, Overvalued between 15.23 and 18.99, and Strongly Overvalued above 18.99. The current Forward P/FCF of 6.45 falls within the Undervalued range.

Yelp Inc (YELP) has a current Price-to-Book (P/B) ratio of 2.70. Compared to its 3-year average P/B ratio of 3.43 , the current P/B ratio is approximately -21.32% higher. Relative to its 5-year average P/B ratio of 3.33, the current P/B ratio is about -18.96% higher. Yelp Inc (YELP) has a Forward Free Cash Flow (FCF) yield of approximately 14.40%. Compared to its 3-year average FCF yield of 9.50%, the current FCF yield is approximately 51.61% lower. Relative to its 5-year average FCF yield of 8.50% , the current FCF yield is about 69.41% lower.

2.70

P/B

Median3y

3.43

Median5y

3.33

14.40

FCF Yield

Median3y

9.50

Median5y

8.50

Competitors Valuation Multiple

The average P/S ratio for YELP's competitors is 1.70, providing a benchmark for relative valuation. Yelp Inc Corp (YELP) exhibits a P/S ratio of 1.33, which is -21.82% above the industry average. Given its robust revenue growth of 3.75%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Webtoon Entertainment Inc

Performance Decomposition

Market capitalization of YELP decreased by 10.52% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 10.65 to 11.90.

The secondary factor is the Revenue Growth, contributed 3.75%to the performance.

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

3.75%

357.02M → 370.39M

Revenue Growth

11.74%

10.65 → 11.90

Margin Expansion

-26.01%

19.47 → 14.40

P/E Change

-10.52%