Yelp Stock Valuation

YELP
 Stock
  

USD 33.91  0.14  0.41%   

What is the intrinsic value of Yelp stock? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Yelp, is its stock price multiplied by the total number of shares outstanding, calculating Yelp's enterprise value requires a different approach. It uses Yelp's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Yelp Inc maintains a prevalent Real Value of $39.79 per share. The last-minute price of the company is $33.91. At this time, the company appears to be undervalued. Our model calculates the value of Yelp Inc from examining the company fundamentals such as Return On Asset of 2.69 %, current valuation of 1.86 B, and Profit Margin of 4.14 % as well as analyzing its technical indicators and Probability Of Bankruptcy. In general, we encourage obtaining undervalued securities and abandoning overvalued securities since, at some point, asset prices and their ongoing real values will grow together.
  
Yelp Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Yelp's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today 33.91
Please note that Yelp's price fluctuation is very steady at this time. Calculation of the real value of Yelp Inc is based on 3 months time horizon. Increasing Yelp's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Yelp Inc is useful when determining the fair value of the Yelp stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Yelp. Since Yelp is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Yelp Stock. However, Yelp's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
39.79
Real Value
43.01
Upside
Estimating the potential upside or downside of Yelp Inc helps investors to forecast how Yelp stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Yelp more accurately as focusing exclusively on Yelp's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
32.5134.4636.41
Details
Hype
Prediction
LowEstimated ValueHigh
30.2033.4236.64
Details
Naive
Forecast
LowNext ValueHigh
29.4332.6535.87
Details
9 Analysts
Consensus
LowTarget PriceHigh
32.0040.4448.00
Details

Yelp Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Yelp's current stock value. Our valuation model uses many indicators to compare Yelp value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Yelp competition to find correlations between indicators driving Yelp's intrinsic value. More Info.
Yelp Inc is rated first in beta category among related companies. It is rated first in price to book category among related companies fabricating about  1.78  of Price to Book per Beta. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Yelp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Yelp's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Yelp's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Yelp's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Yelp and how it compares across the competition.

About Yelp Valuation

The stock valuation mechanism determines the current worth of Yelp Inc on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Yelp Inc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Yelp Inc based exclusively on its fundamental and basic technical indicators. By analyzing Yelp's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Yelp's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Yelp. We calculate exposure to Yelp's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Yelp's related companies.
Yelp Inc. operates a platform that connects consumers with local businesses in the United States and internationally. Yelp Inc. was incorporated in 2004 and is headquartered in San Francisco, California. Yelp operates under Internet Content Information classification in the United States and is traded on New York Stock Exchange. It employs 4400 people.

Yelp Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Yelp does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio3.00
Revenue Growth19.20%
Enterprise Value To Ebitda26.38
Enterprise Value To Revenue1.72
Check out Your Current Watchlist. You can also try Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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When running Yelp Inc price analysis, check to measure Yelp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Yelp is operating at the current time. Most of Yelp's value examination focuses on studying past and present price action to predict the probability of Yelp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Yelp's price. Additionally, you may evaluate how the addition of Yelp to your portfolios can decrease your overall portfolio volatility.
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Is Yelp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Yelp. If investors know Yelp will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Yelp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Yelp Inc is measured differently than its book value, which is the value of Yelp that is recorded on the company's balance sheet. Investors also form their own opinion of Yelp's value that differs from its market value or its book value, called intrinsic value, which is Yelp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Yelp's market value can be influenced by many factors that don't directly affect Yelp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Yelp's value and its price as these two are different measures arrived at by different means. Investors typically determine Yelp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Yelp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.