Yelp (WBO:YELP) GF Value Rank : 7 (As of May. 06, 2024)

View and export this data going back to 2019. Start your Free Trial

What is Yelp GF Value Rank?

Yelp has the GF Value Rank of 7.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of Yelp's GF Value Rank

For the Internet Content & Information subindustry, Yelp's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Yelp's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Yelp's GF Value Rank falls into.

Yelp GF Value Rank Related Terms

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

Yelp (WBO:YELP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Yelp Inc (WBO:YELP) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

YELP:USA Y9L:Germany Y9L:Germany YELP:Argentina

Address

350 Mission Street, 10th Floor, San Francisco, CA, USA, 94105

Website

https://www.yelp.com

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.