What is YELP's intrinsic value?

TickerWorth's blended fair value for Yelp Inc. (YELP) is $41.95 per share, versus a market price of $19.88 (53% below fair value).

Is YELP overvalued or undervalued?

On our blended fair value YELP looks undervalued vs fair value at $19.88. This is an educational estimate, not advice.

What discount rate is used for YELP?

A WACC of 9.8% and a terminal growth rate of 2.5%.

Is Yelp stock undervalued?

TickerWorth's fair value for Yelp Inc. (YELP) is $41.95 against a market price of $19.88. Our read: 53% below fair value. This is a model estimate, not investment advice.

Yelp (YELP) DCF valuation and fair value

Our fair value for Yelp Inc. (YELP) is $41.95, built on a 9.8% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.

What growth is priced into Yelp stock?

Today's price implies revenue growth of −10.4% a year for 5 years; our model assumes 1.4% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $19.88. A model estimate, not investment advice.

Yelp (YELP) insider trading

The most recent insider filing (SEC Form 4) for Yelp Inc. (YELP): Eaton Sam, Chief Technology Officer, shares withheld (tax) on 2026-05-20. The latest filings are listed on this page. A disclosure, not a signal to trade.

YELP · Intrinsic value

Is Yelp Inc. (YELP) overvalued or undervalued?

Name: Yelp Inc. (YELP) DCF intrinsic value
Creator: TickerWorth

Yelp Inc. (YELP) trades at the delayed market price of $19.88 a share. That price already implies revenue growth of −10.4% a year for 5 years. TickerWorth's fair value is $41.95 a share (53% below fair value), as of Oct 19, 2026. It is a model estimate, and every input behind it is sourced below.

Model by Miraaj Patel · generated from a hand-researched model · Updated Oct 19, 2026 · How these pages are made

Open full YELP analysis

Is YELP undervalued?

Backup data source

This price comes from our backup market-data feed.

Fair value: $41.95
Market price: $19.88
Upside to fair value: +111.0%
Verdict: 53% below fair value

Price as of 19 Oct 2026, 13:16 UTC · Prices are delayed.

Fair value against the delayed market price: 53% below fair value.

Reverse DCF: Today's price implies revenue growth of −10.4% a year for 5 years; our model assumes 1.4% a year on average over the same horizon.

What is YELP's TickerWorth Score?

A67/100

Scores higher than almost every company we compare it with

Compared with Communication Services companies in US

Its strongest point: looks cheap on the numbers. Its weakest: recent price trend has been weak.

Value · 81 of 100
Cheaper than 81% of Communication Services companies in US
Price vs worth · 100 of 100
Quality · 64 of 100
More profitable than 64% of Communication Services companies in US
Financial health · 69 of 100
Financially stronger than 69% of Communication Services companies in US
Growth · 47 of 100
Growing faster than 47% of Communication Services companies in US
Momentum · 17 of 100
Outperformed 17% of Communication Services companies in US over the past year

Confidence: High confidence · Scored 19 Oct 2026, 13:16 UTC

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Where the numbers come from

Hand-researched model

What the modeller flagged

YEAR-1 FCF IS ~72% BELOW YELP'S REPORTED FCF (~$91M modeled vs $323.7M FY2025) — far past the 20% threshold. It decomposes: (1) stock compensation is expensed rather than added back — $134.0M in FY2025, ~$103M guided for FY2026; (2) the FY2026 GAAP margin reset from 12.6% to ~8.9% (~$54M of operating income); (3) acquired-intangible amortization not added back (~$24M in 2026); (4) normalized 26% tax vs ~$34.5M actually paid in FY2025; (5) interest income on the old cash pile (~$20M of FY2025 other income), which no longer exists. Running FY2025 itself through this model's rules gives ~$128M, so the haircut is method, not a forecasting error.
TERMINAL VALUE IS ~74% OF ENTERPRISE VALUE — just under the 75% danger line. The WACC/terminal-growth grid runs ~$21.5 to ~$42; that spread is the honest confidence interval.
BETA IS THE BIGGEST JUDGEMENT CALL: normalized from the published 0.452 to 1.0. Accepting the published figure would raise the value to ~$44; this model rejects it as an artefact of a stock driven by its own news.
THE GROWTH PATH LEANS ON A MANAGEMENT TARGET: Years 2-5 assume Other revenue roughly reaches the company's $250M run-rate target (a year late) to offset a shrinking advertising line. If advertising falls faster — AI assistants answering local queries without sending clicks — revenue could decline outright, which this file does not model.
AI DISRUPTION IS A TWO-SIDED, UNMODELED RISK. Yelp now licenses its reviews to OpenAI and others (part of the fast-growing Other line), but the same assistants compete for the local-search traffic that feeds 91% of revenue. A DCF can't settle which effect wins.
SBC treatment: SBC stays expensed inside GAAP EBIT and dilution is captured through the diluted share count. Adding SBC back (the company's adjusted-EBITDA and FCF view) would roughly lift the value to ~$43/share; that difference is the price of treating stock pay as a real cost.

YELP DCF valuation: where the gap comes from

At a recent price of $19.88, Yelp Inc. (YELP) trades 53% below TickerWorth's blended fair value of $41.95 per share — a discounted-cash-flow model cross-checked against peer multiples and asset value — meaning the market currently prices YELP undervalued vs our estimate of what the business is intrinsically worth. Our fair value sits above the market, an implied +111.0% move to close the gap if the business performs in line with our assumptions. This is an educational model, not a price target or a recommendation — the value moves with the inputs, which you can test yourself using the WACC slider below.

Read the full reasoning

One of the lenses behind that blended figure is a discounted-cash-flow model, which on its own values YELP at about $28.31 per share. The rest of this page walks through that DCF — its assumptions, reverse-DCF and discount-rate sensitivity — because it is the auditable anchor of the blend.

The valuation discounts Yelp Inc.'s projected free cash flows at a weighted-average cost of capital (WACC) of 9.8%, with a long-run terminal growth rate of 2.5%. About 74% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.

Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly -10.4% annual revenue growth for YELP. Our base case instead compounds to about 1.4% a year over the same forecast, so the market is pricing in slower growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.

Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, YELP's modeled DCF value ranges from about $21.49 to $42.23 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.

How to read this page: the DCF fair value is what Yelp Inc. would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of YELP's intrinsic value. Figures update as new filings and prices come in.

Every input behind YELP's DCF

Input	Value	Source
Base-year revenueYelp FY2025 10-K (accession 0001345016-26-000019, filed 2026-02-27): us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, FY2025 = $1,464,955K, +3.7% on FY2024 $1,412,064K. Mix: Services advertising $948M (+8%), Restaurants, Retail & Other (RR&O) advertising $444M (-6%), Other revenue ~$73M (+17%). Calendar fiscal year. CROSS-CHECK: H1 2026 revenue $736,976K, +1.1% on H1 2025 ($728,928K); TTM to 2026-06-30 $1,473.0M. Inside that +1%, advertising fell 3% (RR&O -10%) and Other revenue rose 87%, much of it the acquired Hatch business ($14.1M since 2026-02-02).	$1,464,955,000	Yelp FY2025 10-K (accession 0001345016-26-000019, filed 2026-02-27): us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, FY2025 = $1,464,955K, +3.7% on FY2024 $1,412,064K. Mix: Services advertising $948M (+8%), Restaurants, Retail & Other (RR&O) advertising $444M (-6%), Other revenue ~$73M (+17%). Calendar fiscal year. CROSS-CHECK: H1 2026 revenue $736,976K, +1.1% on H1 2025 ($728,928K); TTM to 2026-06-30 $1,473.0M. Inside that +1%, advertising fell 3% (RR&O -10%) and Other revenue rose 87%, much of it the acquired Hatch business ($14.1M since 2026-02-02).
Base EBIT marginYelp FY2025 10-K (accession 0001345016-26-000019, filed 2026-02-27): us-gaap:OperatingIncomeLoss FY2025 $184,521K / $1,464,955K = 12.60% GAAP operating margin, AFTER $134.0M of stock-based compensation (9.1% of revenue) and $50.1M of D&A. This is the PEAK GAAP margin in Yelp's history (FY2023 5.9%, FY2024 10.7%) and it is NOT the run-rate: H1 2026 GAAP operating income was $71,028K on $736,976K = 9.64% (H1 2025: 11.35%), and the FY2026 guide implies ~8.9% (see forecast note). TTM to 2026-06-30: $172.8M / $1,473.0M = 11.7%. Because the base is the peak, the mechanical 'margin fade' test compares Year 5 with 12.6%; Year 5 here is 12.0%, so the model does not trip the cyclical flag, and that is deliberate — the 2026 dip is an investment year plus acquisition costs, not a cycle.	12.6%	Yelp FY2025 10-K (accession 0001345016-26-000019, filed 2026-02-27): us-gaap:OperatingIncomeLoss FY2025 $184,521K / $1,464,955K = 12.60% GAAP operating margin, AFTER $134.0M of stock-based compensation (9.1% of revenue) and $50.1M of D&A. This is the PEAK GAAP margin in Yelp's history (FY2023 5.9%, FY2024 10.7%) and it is NOT the run-rate: H1 2026 GAAP operating income was $71,028K on $736,976K = 9.64% (H1 2025: 11.35%), and the FY2026 guide implies ~8.9% (see forecast note). TTM to 2026-06-30: $172.8M / $1,473.0M = 11.7%. Because the base is the peak, the mechanical 'margin fade' test compares Year 5 with 12.6%; Year 5 here is 12.0%, so the model does not trip the cyclical flag, and that is deliberate — the 2026 dip is an investment year plus acquisition costs, not a cycle.
Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast	0% → 1% → 2% → 2% → 2%	ESTIMATEAssumption — TickerWorth's 5-year explicit forecast
Risk-free rateUS 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation; program-wide input shared by every researched model.	5.2%	US 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation; program-wide input shared by every researched model.
BetaESTIMATEAssumption — normalized estimate (published yfinance 5Y-monthly beta 0.452): NORMALIZED UP from the published 0.452 to 1.0 — CONSERVATIVE (raises WACC, lowers value). A 0.45 beta would give Yelp a 7.5% cost of equity, about the yield on the high-yield market, for a ~$1B small-cap whose revenue is flat, whose ad clicks are falling and whose core product is directly exposed to AI search. The published figure is low because Yelp's returns have been dominated by company-specific moves (a 52-week range of roughly $17-$34 while the market rose), which drags down correlation without making the business less risky. 1.0 is market risk — a neutral stand-in, below what an unlevered internet-advertising peer set would typically show. At the published 0.452 the model gives ~$44 (WACC 7.3%); at 1.2 it gives ~$25. This is the single largest judgement call in the file.	1.00	ESTIMATEAssumption — normalized estimate (published yfinance 5Y-monthly beta 0.452): NORMALIZED UP from the published 0.452 to 1.0 — CONSERVATIVE (raises WACC, lowers value). A 0.45 beta would give Yelp a 7.5% cost of equity, about the yield on the high-yield market, for a ~$1B small-cap whose revenue is flat, whose ad clicks are falling and whose core product is directly exposed to AI search. The published figure is low because Yelp's returns have been dominated by company-specific moves (a 52-week range of roughly $17-$34 while the market rose), which drags down correlation without making the business less risky. 1.0 is market risk — a neutral stand-in, below what an unlevered internet-advertising peer set would typically show. At the published 0.452 the model gives ~$44 (WACC 7.3%); at 1.2 it gives ~$25. This is the single largest judgement call in the file.
Terminal growthESTIMATEAssumption — house default: House default 2.5%, kept for comparability. FLAG: generous for a company guiding to 0% growth this year with advertising volumes falling; it assumes the Other-revenue build succeeds and advertising stabilises in the long run. 2.0% takes ~$1.45/share off. Well below the 9.75% WACC.	2.5%	ESTIMATEAssumption — house default: House default 2.5%, kept for comparability. FLAG: generous for a company guiding to 0% growth this year with advertising volumes falling; it assumes the Other-revenue build succeeds and advertising stabilises in the long run. 2.0% takes ~$1.45/share off. Well below the 9.75% WACC.
Diluted sharesYelp Q2 2026 results release, 8-K Ex-99.1 (accession 0001345016-26-000059, filed 2026-08-06): Q2 2026 weighted-average diluted shares 55,726K (Q1 2026: 59,374K; FY2025: 65,090K; FY2024: 70,611K) — a 15% YoY reduction from buybacks. CONSERVATIVE: only 54,263,621 shares were outstanding on 2026-07-31 after a further ~$25M of July repurchases, which would add ~$0.75/share. Buybacks are now PAUSED for the rest of 2026 while the revolver is repaid, so the count will drift up with stock compensation until they resume in 2027.	56M	Yelp Q2 2026 results release, 8-K Ex-99.1 (accession 0001345016-26-000059, filed 2026-08-06): Q2 2026 weighted-average diluted shares 55,726K (Q1 2026: 59,374K; FY2025: 65,090K; FY2024: 70,611K) — a 15% YoY reduction from buybacks. CONSERVATIVE: only 54,263,621 shares were outstanding on 2026-07-31 after a further ~$25M of July repurchases, which would add ~$0.75/share. Buybacks are now PAUSED for the rest of 2026 while the revolver is repaid, so the count will drift up with stock compensation until they resume in 2027.
Market priceBackup price feed · as of 2026-10-19 13:16 UTC	$19.88	Backup price feed · as of 2026-10-19 13:16 UTC

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What does Yelp Inc. do?

What does it do?

Yelp Inc. operates a platform that connects consumers with local businesses in the United States and internationally. It operates in the Internet Content & Information industry (Communication Services sector), headquartered in United States. The company employs roughly 5,168 people.

How does it make money?

The business turns $1.5B in annual revenue into profit. Out of every $100 of sales, about $13 is left as operating profit (operating margin of 12.7%), after a 90% gross margin on the products/services it sells. After all costs, taxes and interest, 8.6% of revenue becomes bottom-line net profit.

Is it financially healthy?

Financially it looks solid: carries modest debt (0.2× equity), comfortably covers its short-term bills (1.7× current ratio), and is currently profitable.

Who at YELP filed insider trades?

Recent insider filings for Yelp Inc.
Date	Insider	Relationship	What happened	Value	Filing
20 May 2026	Eaton Sam	Chief Technology Officer	Shares withheld (tax)	$253,147.02	Form 4 for Eaton Sam (opens sec.gov in a new tab)
20 May 2026	Nachman Joseph R	Chief Operating Officer	Shares withheld (tax)	$232,160.04	Form 4 for Nachman Joseph R (opens sec.gov in a new tab)
20 May 2026	Schwarzbach David A	Chief Financial Officer	Shares withheld (tax)	$224,969.64	Form 4 for Schwarzbach David A (opens sec.gov in a new tab)
20 May 2026	Stoppelman Jeremy	Director, Chief Executive Officer	Shares withheld (tax)	$460,185.60	Form 4 for Stoppelman Jeremy (opens sec.gov in a new tab)
1 May 2026	Saldanha Craig	Chief Product Officer	Open-market sale	$33,804.00	Form 4 for Saldanha Craig (opens sec.gov in a new tab)
15 Apr 2026	Schwarzbach David A	Chief Financial Officer	Open-market sale	$199,471.50	Form 4 for Schwarzbach David A (opens sec.gov in a new tab)

A disclosure, not a signal to trade. Source: SEC EDGAR (Form 4). Older filings and the 90-day buying-and-selling read are part of Pro. See plans

Common questions

What is YELP's intrinsic value?
TickerWorth's blended fair value for Yelp Inc. (YELP) is $41.95 per share, versus a market price of $19.88 (53% below fair value).
Is YELP overvalued or undervalued?
On our blended fair value YELP looks undervalued vs fair value at $19.88. This is an educational estimate, not advice.
What discount rate is used for YELP?
A WACC of 9.8% and a terminal growth rate of 2.5%.
Is Yelp stock undervalued?
TickerWorth's fair value for Yelp Inc. (YELP) is $41.95 against a market price of $19.88. Our read: 53% below fair value. This is a model estimate, not investment advice.
Yelp (YELP) DCF valuation and fair value
Our fair value for Yelp Inc. (YELP) is $41.95, built on a 9.8% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into Yelp stock?
Today's price implies revenue growth of −10.4% a year for 5 years; our model assumes 1.4% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $19.88. A model estimate, not investment advice.
Yelp (YELP) insider trading
The most recent insider filing (SEC Form 4) for Yelp Inc. (YELP): Eaton Sam, Chief Technology Officer, shares withheld (tax) on 2026-05-20. The latest filings are listed on this page. A disclosure, not a signal to trade.