Yelp Valuation

Is YELP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of YELP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: YELP (€38.2) is trading below our estimate of fair value (€161.18)

Significantly Below Fair Value: YELP is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for YELP?

Other financial metrics that can be useful for relative valuation.

YELP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.8x
Enterprise Value/EBITDA19x
PEG Ratio1.7x

Price to Earnings Ratio vs Peers

How does YELP's PE Ratio compare to its peers?

The above table shows the PE ratio for YELP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average58.9x
HEM Hemnet Group
77.4x26.0%kr27.9b
CARG CarGurus
78.9x29.1%US$2.5b
ZD Ziff Davis
56.6x47.9%US$2.4b
2371 Kakaku.com
22.5x8.2%JP¥358.8b
YELP Yelp
28x16.8%€2.8b

Price-To-Earnings vs Peers: YELP is good value based on its Price-To-Earnings Ratio (28x) compared to the peer average (58.9x).


Price to Earnings Ratio vs Industry

How does YELP's PE Ratio compare vs other companies in the European Interactive Media and Services Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a0%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a0%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: YELP is expensive based on its Price-To-Earnings Ratio (28x) compared to the European Interactive Media and Services industry average (21.4x).


Price to Earnings Ratio vs Fair Ratio

What is YELP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

YELP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio28x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate YELP's Price-To-Earnings Fair Ratio for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst YELP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€38.20
€43.73
+14.5%
10.4%€51.38€35.50n/a8
Apr ’25€36.60
€43.14
+17.9%
10.7%€50.83€35.12n/a8
Mar ’25€35.40
€43.14
+21.9%
10.7%€50.83€35.12n/a8
Feb ’25€40.00
€43.85
+9.6%
12.7%€50.67€29.48n/a10
Jan ’25€42.60
€42.32
-0.7%
14.8%€51.10€29.73n/a10
Dec ’24€40.40
€43.10
+6.7%
16.5%€56.15€29.95n/a10
Nov ’24€39.60
€40.95
+3.4%
17.2%€56.15€29.95n/a10
Oct ’24€39.40
€40.95
+3.9%
17.2%€56.15€29.95n/a10
Sep ’24€40.60
€41.00
+1.0%
17.2%€55.17€29.42n/a11
Aug ’24€41.20
€34.47
-16.3%
23.2%€48.98€23.58n/a10
Jul ’24€33.60
€30.55
-9.1%
19.0%€39.01€23.59n/a9
Jun ’24€31.00
€30.55
-1.5%
19.0%€39.01€23.59n/a9
May ’24€26.60
€32.48
+22.1%
17.2%€40.75€23.54n/a8
Apr ’24€28.40
€33.42
+17.7%
16.5%€41.49€23.97€36.608
Mar ’24€28.00
€33.29
+18.9%
16.8%€42.14€24.35€35.409
Feb ’24€28.80
€29.61
+2.8%
18.1%€38.60€21.14€40.009
Jan ’24€25.20
€32.54
+29.1%
15.4%€39.56€21.66€42.609
Dec ’23€29.60
€35.69
+20.6%
9.8%€41.90€29.93€40.409
Nov ’23€39.60
€38.35
-3.1%
12.7%€48.60€29.76€39.609
Oct ’23€35.20
€37.88
+7.6%
13.2%€48.01€29.39€39.409
Sep ’23€33.60
€37.88
+12.7%
13.2%€48.01€29.39€40.609
Aug ’23€30.20
€33.42
+10.7%
12.8%€44.09€28.41€41.209
Jul ’23€26.20
€34.57
+31.9%
15.8%€45.65€27.02€33.6010
Jun ’23€27.00
€34.57
+28.0%
15.8%€45.65€27.02€31.0010
May ’23€32.00
€37.03
+15.7%
14.1%€44.04€28.76€26.6010
Apr ’23€31.20
€37.03
+18.7%
14.1%€44.04€28.76€28.4010

Analyst Forecast: Target price is less than 20% higher than the current share price.


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