Yelp Stock Valuation

YELP -  USA Stock  

USD 38.49  1.14  3.05%

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 Free Cash Flow is very stable at the moment as compared to the past year. Yelp reported last year Free Cash Flow of 12.59 Million. As of 24th of July 2021, Enterprise Value is likely to grow to about 2.1 B, while Tangible Asset Value is likely to drop about 403.2 M.
Yelp Inc maintains a prevalent Real Value of $34.8 per share. The last-minute price of the company is $38.49. At this time, the company appears to be overvalued. Our model calculates the value of Yelp Inc from examining the company fundamentals such as Profit Margin of (2.22) %, return on asset of (1.96) %, and Current Valuation of 2.5 B 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.

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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.
Overvalued
Today
38.49
24th of July 2021
Share
Yelp is very steady asset. Calculation of real value of Yelp Inc is based on 6 months time horizon. Increasing Yelp Inc time horizon generally increases accuracy of value calculation and significantly improves 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.
34.80
Real Value
42.34
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:
Earnings
Estimates (5)
LowProjected EPSHigh
-0.17-0.10.08
Details
Hype
Prediction
LowEstimated ValueHigh
36.0938.4040.71
Details
Naive
Forecast
LowNext ValueHigh
36.3838.7041.01
Details
13 Analysts
Consensus
LowTarget PriceHigh
26.0037.0848.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. Some money managers use Yelp's intrinsic value based on its ongoing forecasts of Yelp's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by look to relative valuation against Yelp's closest peers. When choosing a valuation method Yelp Inc, make sure it is appropriate for the firm given its current financial situation and market classification. If more than one is valuation category is appropriate, we suggest using both methods to arrive at a better estimate.

Yelp Investments

169.38 MillionShare

Yelp Valuation Drivers Correlation

Many accounts on the financial statements of Yelp Inc are highly interrelated and sometimes correlated. Consequently, when conducting Yelp's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Yelp
Click cells to compare fundamentals

Yelp Market Cap

Yelp Inc is rated below average in market capitalization category among related companies. Market capitalization of Internet Content & Information industry is at this time estimated at about 2.98 Trillion. Yelp adds roughly 2.86 Billion in market capitalization claiming only tiny portion of equities under Internet Content & Information industry.
Capitalization  Workforce  Valuation  Revenue  Total debt

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 fourth in price to sales category among related companies. It is rated fourth in price to book category among related companies fabricating about  1.02  of Price to Book per Price to Sales. . As of 24th of July 2021, Price to Book Value is likely to grow to 3.69

About Yelp Valuation

The equity 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.
Last ReportedProjected for 2021
Gross Profit448.8 M484.3 M
Profit Margin(2.23) (2.40) 
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 00 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 Ratio4.86
Earnings Quarterly Growth23.00%
Revenue Growth-13.30%
Enterprise Value To Ebitda-218.63
Earnings Growth18.20%
Enterprise Value To Revenue2.86

Yelp Current Valuation Indicators

Valuation refers to the process of determining the present value of Yelp Inc and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Yelp we look at many different elements of the entity such as Yelp's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Check out Your Current Watchlist. Note that the Yelp Inc information on this page should be used as a complementary analysis to other Yelp's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

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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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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 Inc underlying business (such as 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.