(YELP) Yelp - Overview
Sector: Communication Services | Industry: Internet Content & Information | Exchange: NYSE (USA) | Market Cap: 1.231m USD | Total Return: -41% in 12m
Avg Turnover: 29.6M
EPS Trend: 51.9%
Qual. Beats: 0
Rev. Trend: 97.2%
Qual. Beats: 1
Warnings
Altman Z'' -6.16 < 1.0 - financial distress zone
Below Avwap Earnings
Tailwinds
No distinct edge detected
Yelp Inc. operates an interactive platform connecting consumers with local businesses across diverse categories, including restaurants, home services, and retail. The company generates the majority of its revenue through a performance-based advertising model, primarily cost-per-click (CPC) ads, while diversifying into subscription-based management tools and data licensing.
In the Interactive Media & Services sector, platform monetization often relies on the network effect, where the value of the service increases for advertisers as the user base and volume of crowdsourced reviews grow. Yelp has expanded its utility through strategic integrations, such as its partnership with DoorDash for food delivery and the Yelp Guest Manager suite for restaurant operations.
For a detailed analysis of the companys valuation metrics and historical performance, consider reviewing the data on ValueRay.
The company utilizes a multi-channel distribution strategy, selling products via a direct sales force, third-party partners, and self-service online portals. Beyond traditional listings, Yelp offers consumer protection features like Yelp Guaranteed and technical integrations through its Fusion API, targeting both small businesses and enterprise-level clients.
- Ad revenue growth in high-value Home and Local Services categories
- Sales force productivity and headcount costs impact consolidated operating margins
- Local advertising demand remains sensitive to broader macroeconomic consumer spending
- Expansion of self-serve ad platform reduces reliance on direct sales personnel
- Competition from Google and Meta affects long-term market share and pricing power
| Net Income: 138.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.28 > 0.02 and ΔFCF/TA 0.29 > 1.0 |
| NWC/Revenue: 8.74% < 20% (prev 24.02%; Δ -15.28% < -1%) |
| CFO/TA 0.33 > 3% & CFO 331.2m > Net Income 138.9m |
| Net Debt (69.4m) to EBITDA (257.1m): 0.27 < 3 |
| Current Ratio: 1.74 > 1.5 & < 3 |
| Outstanding Shares: last quarter (59.4m) vs 12m ago -11.81% < -2% |
| Gross Margin: 88.94% > 18% (prev 0.91%; Δ 8.80k% > 0.5%) |
| Asset Turnover: 146.9% > 50% (prev 145.9%; Δ 0.95% > 0%) |
| Interest Coverage Ratio: 73.78 > 6 (EBITDA TTM 257.1m / Interest Expense TTM 2.73m) |
| A: 0.13 (Total Current Assets 302.0m - Total Current Liabilities 173.7m) / Total Assets 1.01b |
| B: -1.38 (Retained Earnings -1.39b / Total Assets 1.01b) |
| C: 0.20 (EBIT TTM 201.4m / Avg Total Assets 999.3m) |
| D: -3.67 (Book Value of Equity -1.40b / Total Liabilities 382.2m) |
| Altman-Z'' = -6.16 = D |
| DSRI: 0.94 (Receivables 152.2m/158.2m, Revenue 1.47b/1.44b) |
| GMI: 1.02 (GM 88.94% / 90.88%) |
| AQI: 1.63 (AQ_t 0.59 / AQ_t-1 0.36) |
| SGI: 1.02 (Revenue 1.47b / 1.44b) |
| TATA: -0.19 (NI 138.9m - CFO 331.2m) / TA 1.01b) |
| Beneish M = -2.86 (Cap -4..+1) = A |
As of May 30, 2026, the stock is trading at USD 22.80 with a total of 1,274,155 shares traded.
Over the past week, the price has changed by +4.40%,
over one month by -18.60%,
over three months by +2.29% and
over the past year by -41.04%.
Yelp has received a consensus analysts rating of 3.00. Therefore, it is recommended to hold YELP.
- StrongBuy: 1
- Buy: 1
- Hold: 8
- Sell: 1
- StrongSell: 1
| Analysts Target Price | 26.5 | 16.2% |
P/E Trailing = 10.2706
P/E Forward = 14.7493
P/S = 0.8388
P/B = 1.951
P/EG = 0.4013
Revenue TTM = 1.47b USD
EBIT TTM = 201.4m USD
EBITDA TTM = 257.1m USD
Long Term Debt = 130.0m USD (from longTermDebt, last quarter)
Short Term Debt = 7.06m USD (from shortTermDebt, last quarter)
Debt = 179.8m USD (from shortLongTermDebtTotal, last quarter) + Leases 24.9m
Net Debt = 69.4m USD (calculated: Debt 179.8m - CCE 110.4m)
Enterprise Value = 1.30b USD (1.23b + Debt 179.8m - CCE 110.4m)
Interest Coverage Ratio = 73.78 (Ebit TTM 201.4m / Interest Expense TTM 2.73m)
EV/FCF = 4.63x (Enterprise Value 1.30b / FCF TTM 280.7m)
FCF Yield = 21.58% (FCF TTM 280.7m / Enterprise Value 1.30b)
FCF Margin = 19.12% (FCF TTM 280.7m / Revenue TTM 1.47b)
Net Margin = 9.47% (Net Income TTM 138.9m / Revenue TTM 1.47b)
Gross Margin = 88.94% ((Revenue TTM 1.47b - Cost of Revenue TTM 162.4m) / Revenue TTM)
Gross Margin QoQ = 84.88% (prev 89.99%)
Tobins Q-Ratio = 1.28 (Enterprise Value 1.30b / Total Assets 1.01b)
Interest Expense / Debt = 1.52% (Interest Expense 2.73m / Debt 179.8m)
Taxrate = 40.65% (12.1m / 29.9m)
NOPAT = 119.5m (EBIT 201.4m * (1 - 40.65%))
Current Ratio = 1.74 (Total Current Assets 302.0m / Total Current Liabilities 173.7m)
Debt / Equity = 0.28 (Debt 179.8m / totalStockholderEquity, last quarter 631.1m)
Debt / EBITDA = 0.27 (Net Debt 69.4m / EBITDA 257.1m)
Debt / FCF = 0.25 (Net Debt 69.4m / FCF TTM 280.7m)
Total Stockholder Equity = 705.4m (last 4 quarters mean from totalStockholderEquity)
RoA = 13.90% (Net Income 138.9m / Total Assets 1.01b)
RoE = 6.62% (Net Income TTM 138.9m / Total Stockholder Equity 2.10b)
RoCE = 9.03% (EBIT 201.4m / Capital Employed (Equity 2.10b + L.T.Debt 130.0m))
RoIC = 14.12% (NOPAT 119.5m / Invested Capital 846.6m)
WACC = 7.69% (E(1.23b)/V(1.41b) * Re(8.68%) + D(179.8m)/V(1.41b) * Rd(1.52%) * (1-Tc(0.41)))
Discount Rate = 8.68% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -95.56 | Cagr: -8.86%
[DCF] Terminal Value 75.95% ; FCFF base≈276.5m ; Y1≈286.7m ; Y5≈323.9m
[DCF] Fair Price = 89.74 (EV 5.00b - Net Debt 69.4m = Equity 4.93b / Shares 55.0m; r=8.35% [WACC [floored]]; 5y FCF grow 3.94% → 2.50% )
EPS Correlation: 51.93 | EPS CAGR: 7.84% | SUE: 0.0 | # QB: 0
Revenue Correlation: 97.17 | Revenue CAGR: 5.44% | SUE: 1.99 | # QB: 1
EPS current Quarter (2026-06-30): EPS=0.36 | Chg30d=-34.27% | Revisions=-67% | Analysts=8
EPS next Quarter (2026-09-30): EPS=0.58 | Chg30d=-8.80% | Revisions=-17% | Analysts=8
EPS current Year (2026-12-31): EPS=1.88 | Chg30d=-11.09% | Revisions=-17% | GrowthEPS=-15.9% | GrowthRev=+0.1%
EPS next Year (2027-12-31): EPS=2.60 | Chg30d=+2.54% | Revisions=+11% | GrowthEPS=+38.0% | GrowthRev=+3.1%
[Analyst] Revisions Ratio: -67%