Yelp Inc. logo YELP - Yelp Inc.

Price: -- -- | CONSENSUS: Hold DETAILS
STRONG
BUY
0
BUY 28
HOLD 29
SELL 10
STRONG
SELL
0
| PRICE TARGET: $27.33 DETAILS
HIGH: $30.00
LOW: $24.00
MEDIAN: $28.00
CONSENSUS: $27.33
UPSIDE: 6.84%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 80% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Undervalued Strong
Trading 61.3% below fair value
Current Price $25.58
Bear Case $61.60 140.8% upside ($61.60 - $25.58) / $25.58 = 140.8% 3% stage 1 growth, 11% discount
Fair Value $66.15 158.6% upside ($66.15 - $25.58) / $25.58 = 158.6% 4% stage 1 growth, 11% discount
Bull Case $71.91 181.1% upside ($71.91 - $25.58) / $25.58 = 181.1% 5% stage 1 growth, 11% discount

Adjust Assumptions

4.0%
11.0%
3.0%

Key Value Driver

FCF growth rate (4% base case)

Terminal Value % of EV 34%
Implied Market Multiple 3.4x
Market is pricing in (growth) -17.3% vs our 4.0% base

Plain-Language Summary

Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $27.33 from 67 analysts, using a 35% weight on analyst consensus. That produces an estimated intrinsic value of $66.15 per share.

Warnings

Wall Street's average price target is $27.33 (from 67 analysts). Our estimate is 219% above the consensus -- consider that gap carefully.

Key Risks

  • P/E alone misleads — earnings depressed by growth investment
  • Cyclical or commodity businesses may be misclassified as platforms
  • Terminal value dominance suggests sensitivity to long-run assumptions