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: 3.68%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 80% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Undervalued Strong
Trading 60.8% below fair value
Current Price $26.36
Bear Case $61.44 133.1% upside ($61.44 - $26.36) / $26.36 = 133.1% 3% stage 1 growth, 11% discount
Fair Value $67.19 154.9% upside ($67.19 - $26.36) / $26.36 = 154.9% 4% stage 1 growth, 11% discount
Bull Case $73.46 178.7% upside ($73.46 - $26.36) / $26.36 = 178.7% 6% stage 1 growth, 11% discount

Adjust Assumptions

4.3%
11.0%
3.0%

Key Value Driver

FCF growth rate (4% base case)

Terminal Value % of EV 34%
Implied Market Multiple 3.6x
Market is pricing in (growth) -16.6% vs our 4.3% 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 $67.19 per share.

Warnings

Wall Street's average price target is $27.33 (from 67 analysts). Our estimate is 224% 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