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Yelp (YELP) Peter Lynch Fair Value : $46.70 (As of Oct. 31, 2024)


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What is Yelp Peter Lynch Fair Value?

Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year. Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years. If 5-Year Growth Rate is greater than 25% a year, we use 25. If 5-Year Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.

Here, as of today, Yelp's PEG is 1. Yelp's 5-Year TTM EBITDA Growth Rate is 25. Yelp's EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2024 was $1.87. Therefore, the Peter Lynch Fair Value for today is $46.70.

As of today (2024-10-31), Yelp's share price is $34.14. Yelp's Peter Lynch fair value is $46.70. Therefore, Yelp's Price to Peter Lynch Fair Value Ratio for today is 0.73.


The historical rank and industry rank for Yelp's Peter Lynch Fair Value or its related term are showing as below:

YELP' s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 0.73   Med: 2.42   Max: 5.18
Current: 0.73


During the past 13 years, the highest Price to Peter Lynch Fair Value Ratio of Yelp was 5.18. The lowest was 0.73. And the median was 2.42.


YELP's Price-to-Peter-Lynch-Fair-Value is ranked better than
68.18% of 88 companies
in the Interactive Media industry
Industry Median: 1.06 vs YELP: 0.73

Note: Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart.


Yelp Peter Lynch Fair Value Historical Data

The historical data trend for Yelp's Peter Lynch Fair Value can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Yelp Peter Lynch Fair Value Chart

Yelp Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Peter Lynch Fair Value
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - 10.28 33.75

Yelp Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Peter Lynch Fair Value Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 15.03 31.50 33.75 39.25 46.70

Competitive Comparison of Yelp's Peter Lynch Fair Value

For the Internet Content & Information subindustry, Yelp's Price-to-Peter-Lynch-Fair-Value, along with its competitors' market caps and Price-to-Peter-Lynch-Fair-Value data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Yelp's Price-to-Peter-Lynch-Fair-Value Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Yelp's Price-to-Peter-Lynch-Fair-Value distribution charts can be found below:

* The bar in red indicates where Yelp's Price-to-Peter-Lynch-Fair-Value falls into.



Yelp Peter Lynch Fair Value Calculation

Yelp's Peter Lynch Fair Value for today is calculated as

Peter Lynch Fair Value=PEG Ratio*5-Year TTM EBITDA Growth Rate***EPS without NRI (TTM)
=1* 25 *1.868
=46.70

Yelp's EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $1.87.


* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** Please be aware that the 5-Year TTM EBITDA Growth Rate is calculated based on TTM data over the last 5 years. For quarterly reported companies, the TTM data adds up the quarterly data reported by the company within the most recent 12 months. For companies that report semi-annually, annually, or do not have enough quarterly data, GuruFocus uses the annual data as the TTM data.

If 5-Year Earnings Growth Rate is greater than 25% a year, we use 25.

If 5-Year Earnings Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.

Please note that we use the 5-year average growth rate of EBITDA per share as the growth rate for non-bank companies, as EBITDA growth is subject to less manipulations than net earnings per share. For banks, we use the 5-year average growth rate of Book Value per share as the growth rate. The reason is that EBITDA is not applicable to Banks and Book value is a relative important measurement for Banks. In the calculation, PEG=1 because Peter Lynch thinks that the fair P/E ratio of the growth stock is equal to its earnings growth rate.


Yelp  (NYSE:YELP) Peter Lynch Fair Value Explanation

Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year.

Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years.

Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart. In Peter Lynch chart, a fixed P/E ratio of 15 is used to draw the Earnings Line. Therefore the value reached has a P/E ratio of 15. But in Peter Lynch Fair Value calculation, P/E equals to the growth rate of EBITDA per share over the past 5 years, which is 25 instead of 15 in this case.

Yelp's Price to Peter Lynch Fair Value Ratio for today is calculated as

Price to Peter Lynch Fair Value=Share Price/Peter Lynch Fair Value
=34.14/46.70
=0.73

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Yelp Peter Lynch Fair Value Related Terms

Thank you for viewing the detailed overview of Yelp's Peter Lynch Fair Value provided by GuruFocus.com. Please click on the following links to see related term pages.


Yelp Business Description

Traded in Other Exchanges
Address
350 Mission Street, 10th Floor, San Francisco, CA, USA, 94105
Yelp Inc operates in the online content market based in the United States. It provides a web-based platform and mobile application to bridge the gap between businesses and consumers. The platform assists consumers through product reviews, tips, photos and videos thereby enabling them in making better buying decisions and posting their feedbacks. Its products and services includes Advertising Products and Business Page Products. In addition, it also lets the buyers directly transact with businesses directly through its platform. Yelp generates revenue mainly from the sale of advertising on its website and mobile app to businesses. The company generates majority of the revenue from United States.
Executives
Joseph R Nachman officer: SVP, Sales C/O YELP INC., 350 MISSION STREET, 10TH FLOOR, SAN FRANCISCO CA 94103
Sam Eaton officer: Chief Technology Officer C/O YELP, 350 MISSION STREET, 10TH FLOOR, SAN FRANCISCO CA 94105
Carmen Orr officer: Chief People Officer C/O YELP INC., 140 NEW MONTGOMERY STREET, 9TH FLOOR, SAN FRANCISCO CA 94105
David A Schwarzbach officer: Chief Financial Officer C/O YELP INC.., 350 MISSION STREET, 10TH FLOOR, SAN FRANCISCO CA 94105
Jeremy Stoppelman director, 10 percent owner, officer: Chief Executive Officer C/O YELP INC., 350 MISSION STREET, 10TH FLOOR, SAN FRANCISCO CA 94103
Craig Saldanha officer: Chief Product Officer C/O YELP INC., 140 NEW MONTGOMERY STREET, 9TH FLOOR, SAN FRANCISCO CA 94105
Yelp Inc officer: Chief Technology Officer 350 MISSION STREET, 10TH FLOOR, SAN FRANCISCO CA 94105
Chris Terrill director FORT WASHINGTON EXECUTIVE CENTER, 600 OFFICE CENTER DRIVE, FORT WASHINGTON PA 19034
Vivek Patel officer: Chief Product Officer C/O YELP INC., 140 MONTGOMERY ST, 9TH FLOOR, SAN FRANCISCO CA 94105
Miriam Warren officer: Chief Diversity Officer C/O YELP, 140 NEW MONTGOMERY STREET, 9TH FLOOR, SAN FRANCISCO CA 94105
Laurence Wilson officer: General Counsel and Secretary C/O YELP! INC., 706 MISSION ST., SAN FRANCISCO CA 94103
Carolyn Patterson officer: Chief People Officer C/O YELP, 140 NEW MONTGOMERY STREET, 9TH FLOOR, SAN FRANCISCO CA 94105
Royce A. Wells director C/O YELP INC., 350 MISSION STREET, 10TH FLOOR, SAN FRANCISCO CA 94105
Christine Barone director C/O YELP INC., 350 MISSION STREET, 10TH FLOOR, SAN FRANCISCO CA 94105
James Miln officer: Interim CFO C/O YELP INC., 140 NEW MONTGOMERY ST., 9TH FLOOR, SAN FRANCISCO CA 94105