Yelp Inc.

Valuation Analysis

About the Company

Yelp Inc. operates a platform that connects consumers with local businesses in the United States and internationally. Its platform covers various categories, including restaurants, shopping, beauty and fitness, health, and other categories, as well as home, local, auto, professional, pets, events, real estate, and financial services. It provides free and paid advertising products to businesses, which include cost-per-click advertising and multi-location Ad products, RepairPal network, and business listing pages. The company also offers Yelp Connect that provides advertisers with a channel to market new offerings, such as new menu items and specials, and communicate business updates to customers; Yelp Guaranteed that provides limited coverage to consumers who hire a yelp guaranteed business

Yelp Inc. Stock at a Glance

Yelp Inc. (YELP) is currently trading at $23.10 with a market capitalization of $1.3B. The trailing P/E ratio stands at 10.6x, with a forward P/E of 5.47x. The 52-week range spans from $19.60 to $35.99; the current price is 35.8% below the yearly high. Year-over-year revenue growth stands at +0.8%. The net profit margin stands at 9.47%.

💰 Dividend

Yelp Inc. currently does not pay a dividend. The company typically reinvests its earnings into growth initiatives and product development.

📊 Analyst Rating

8 analysts rate Yelp Inc. (YELP) on consensus: None. The average price target is $26.50, implying +14.72% from the current price. Analyst price targets range from $21.00 to $32.00.

Yelp Inc.: The Investment Case in Detail

Yelp Inc. (YELP) operates in the Communication Services — specifically Internet Content & Information — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

With a gross margin near 90.04%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns. Our valuation screen flags the stock as undervalued relative to its fundamentals — multiples are running below where the cash flow profile would normally justify.

The Bear Case

Revenue growth has slowed to just 0.8%, which is below nominal GDP — the business is no longer outgrowing the broader economy. Short interest sits at 24.61% of float — a meaningful contingent of professionals is positioned for the share to fall, which deserves attention even if their thesis may turn out to be wrong.

Valuation in Context

With a PEG ratio of 0.57, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity. The EV/EBITDA multiple of 6.37x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

What to Watch Next

• The forward P/E of 5.47x is meaningfully below the trailing 10.6x — analysts expect earnings to step up; the next earnings release is the test.
• The price sits in the lower quartile of the 52-week range — value hunters often start scaling in around this zone if fundamentals hold.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price is below both the 50- and 200-day moving averages, with 50d below 200d — a bearish picture (death-cross alignment).

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (24.61%).

Trading Data

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