What Does Yelp Inc.'s (NYSE:YELP) Share Price Indicate?
Yelp Inc. (NYSE:YELP), is not the largest company out there, but it received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$40.93 at one point, and dropping to the lows of US$32.56. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Yelp's current trading price of US$34.38 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Yelp's outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.
The share price seems sensible at the moment according to our price multiple model, where we compare the company's price-to-earnings ratio to the industry average. We've used the price-to-earnings ratio in this instance because there's not enough visibility to forecast its cash flows. The stock's ratio of 15.34x is currently trading slightly below its industry peers' ratio of 16.42x, which means if you buy Yelp today, you'd be paying a decent price for it. And if you believe that Yelp should be trading at this level in the long run, then there's not much of an upside to gain over and above other industry peers. So, is there another chance to buy low in the future? Given that Yelp's share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.
See our latest analysis for Yelp
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Yelp's earnings over the next few years are expected to increase by 27%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
Are you a shareholder? YELP's optimistic future growth appears to have been factored into the current share price, with shares trading around industry price multiples. However, there are also other important factors which we haven't considered today, such as the track record of its management team. Have these factors changed since the last time you looked at YELP? Will you have enough confidence to invest in the company should the price drop below the industry PE ratio?
Are you a potential investor? If you've been keeping tabs on YELP, now may not be the most advantageous time to buy, given it is trading around industry price multiples. However, the optimistic forecast is encouraging for YELP, which means it's worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Since timing is quite important when it comes to individual stock picking, it's worth taking a look at what those latest analysts forecasts are. At Simply Wall St, we have the analysts estimates which you can view by clicking here.
If you are no longer interested in Yelp, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
10 minutes ago
- Yahoo
Undiscovered Gems In The Middle East To Watch This June 2025
As Middle Eastern markets experience a surge, with Gulf shares climbing amid the Israel-Iran ceasefire and Dubai reaching a 17-year high, investors are increasingly turning their attention to potential opportunities in this dynamic region. In such an environment, identifying stocks that demonstrate strong fundamentals and resilience can be key to navigating these promising yet complex markets. Name Debt To Equity Revenue Growth Earnings Growth Health Rating Sure Global Tech NA 11.95% 18.65% ★★★★★★ MOBI Industry 6.50% 5.60% 24.00% ★★★★★★ Besler Gida Ve Kimya Sanayi ve Ticaret Anonim Sirketi 40.12% 43.54% 38.87% ★★★★★★ Vakif Gayrimenkul Yatirim Ortakligi 0.00% 50.97% 56.63% ★★★★★★ Gür-Sel Turizm Tasimacilik ve Servis Ticaret 6.88% 51.77% 67.59% ★★★★★☆ MIA Teknoloji Anonim Sirketi 17.80% 49.41% 66.89% ★★★★★☆ Segmen Kardesler Gida Üretim ve Ambalaj Sanayi Anonim Sirketi 2.02% -10.23% 74.54% ★★★★☆☆ Kirac Galvaniz Telekominikasyon Metal Makine Insaat Elektrik Sanayi ve Ticaret Anonim Sirketi 12.49% -23.32% 41.51% ★★★★☆☆ Dogan Burda Dergi Yayincilik Ve Pazarlama 64.82% 46.23% -12.39% ★★★★☆☆ Izmir Firça Sanayi ve Ticaret Anonim Sirketi 43.01% 40.80% -34.83% ★★★★☆☆ Click here to see the full list of 218 stocks from our Middle Eastern Undiscovered Gems With Strong Fundamentals screener. Let's uncover some gems from our specialized screener. Simply Wall St Value Rating: ★★★★☆☆ Overview: Izmir Firça Sanayi ve Ticaret Anonim Sirketi is engaged in the production and sale of various cleaning materials and painting brushes both in Turkey and internationally, with a market capitalization of TRY10.34 billion. Operations: Izmir Firça generates revenue primarily from its Building Products segment, amounting to TRY323.37 million. The company's financial performance is characterized by its gross profit margin trend, which provides insights into its cost management and pricing strategies. Izmir Firça Sanayi ve Ticaret Anonim Sirketi has seen its debt to equity ratio improve significantly, dropping from 100.8% to 43% over the past five years. Despite this progress, the company reported a net loss of TRY 21.18 million for Q1 2025, widening from TRY 13.07 million the previous year, with sales falling to TRY 86.52 million from TRY 117.6 million a year ago. Interest payments are well covered by EBIT at five times coverage, indicating financial stability in that area; however, free cash flow remains negative and operating cash flow does not cover debt adequately, highlighting areas for potential improvement moving forward. Unlock comprehensive insights into our analysis of Izmir Firça Sanayi ve Ticaret Anonim Sirketi stock in this health report. Learn about Izmir Firça Sanayi ve Ticaret Anonim Sirketi's historical performance. Simply Wall St Value Rating: ★★★★★★ Overview: Hilan Ltd. is a software as a service (SaaS) provider that develops solutions for enterprise human capital management in Israel, with a market capitalization of ₪6.51 billion. Operations: Hilan generates revenue primarily from Business Information Services (₪1.67 billion), Marketing of Software Products (₪391.95 million), Payroll Services, Human Resources and Organizational Systems (₪539.03 million), and Computer Infrastructure (₪322.35 million). Hilan, a nimble player in the Middle East's professional services sector, has demonstrated robust financial health and growth. Over the past year, earnings surged by 14%, outpacing the industry's 10.9% rise. The company is trading at a significant discount of 42.3% below its estimated fair value, suggesting potential for appreciation. Hilan's debt situation appears strong with more cash than total debt and a reduced debt-to-equity ratio from 33.9% to just 3.4% over five years. Recent results show sales climbing to ILS 782 million from ILS 709 million last year, with net income reaching ILS 66 million up from ILS 58 million previously. Take a closer look at Hilan's potential here in our health report. Gain insights into Hilan's past trends and performance with our Past report. Simply Wall St Value Rating: ★★★★☆☆ Overview: Isrotel Ltd. operates and manages a chain of hotels in Israel with a market capitalization of ₪5.32 billion. Operations: The company generates revenue primarily from its Hotels & Motels segment, which reported earnings of ₪1.96 billion. Isrotel, a notable player in the hospitality sector, has demonstrated resilience with its net debt to equity ratio at 17.2%, deemed satisfactory. Over the past year, earnings grew by 6.8%, outpacing the broader hospitality industry's -6.5%. The company's interest payments are well covered by EBIT at a robust 24.1x coverage, indicating financial stability despite recent challenges reflected in a drop in quarterly net income to ILS 2.13 million from ILS 27.76 million last year. With high-quality past earnings and positive free cash flow, Isrotel stands as a promising investment opportunity amidst current market conditions. Click here to discover the nuances of Isrotel with our detailed analytical health report. Review our historical performance report to gain insights into Isrotel's's past performance. Click through to start exploring the rest of the 215 Middle Eastern Undiscovered Gems With Strong Fundamentals now. Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive. Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include IBSE:IZFAS TASE:HLAN and TASE:ISRO. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Bloomberg
13 minutes ago
- Bloomberg
FTSE 100 Live: Pound Rises After Best Week Since March
Here's a few other stocks we'll have an eye on in London this morning: Hikma: The generic drugmaker is to invest $1 billion to expand manufacturing for its US business. Chemring: The defence contractor has agreed to buy Hampshire-based radio systems firm Landguard for £20 million. TT Electronics: The high-tech components maker said revenue has fallen in the first five months of the year and expects to update on a CEO appointment in the second half.
Yahoo
17 minutes ago
- Yahoo
Bitcoin Soars, Altcoins Fade in $300 Billion Crypto Shakeout
(Bloomberg) -- On the face of it, 2025 looks like a banner year for crypto: Bitcoin hitting a record, an industry-boosting US president whose family is venturing headlong into the sector, and key legislation widely expected to be passed by Congress. Philadelphia Transit System Votes to Cut Service by 45%, Hike Fares Squeezed by Crowds, the Roads of Central Park Are Being Reimagined Sao Paulo Pushes Out Favela Residents, Drug Users to Revive Its City Center Sprawl Is Still Not the Answer Mapping the Architectural History of New York's Chinatown But look beyond the bullish headlines and the rally in Bitcoin, and a vastly different landscape comes into view. Most of the so-called altcoins once touted as competitors to the original cryptoasset are nursing steep declines, with more than $300 billion of market value wiped out so far this year. The sea of red points to a wider malaise that's forcing parts of the industry to confront existential questions. Crypto was imagined by early enthusiasts as a universe where a host of coins competed for investor money, offering a diverse set of use cases. But as Bitcoin reigns supreme, that's giving way to predictions that large swathes of the sector will become a digital wasteland. 'I think they're just going to die, frankly,' Nick Philpott, co-founder of trading platform Zodia Markets, said of altcoins. 'They'll just wither away. Technically, a lot of this stuff will just sit there and gather dust in perpetuity.' Bitcoin's share of the total market value of cryptoassets has climbed by nine percentage points this year to 64%, the highest since January 2021, according to CoinMarketCap. Back then, cryptocurrencies were a largely unregulated space, crypto lending was roaring with few safeguards and nonfungible tokens were just starting to take off. In sharp contrast, altcoins — the catch-all term for all digital assets outside of Bitcoin and stablecoins — are faltering. A MarketVector index tracking the bottom half of the largest 100 digital assets, which more than doubled in the aftermath of Donald Trump's Nov. 5 election victory, has since given up all those gains and is down around 50% in 2025. With Bitcoin soaking up the bulk of capital flows from investors in exchange-traded funds, other parts of the market are increasingly left behind. Even Ether, the second-largest cryptocurrency, remains about 50% below its all-time high after a modest rebound fueled by inflows to spot ETFs investing in the token. 'Historically, Bitcoin's moved and then that's passed down into altcoins,' said Jake Ostrovskis, an OTC trader at Wintermute. 'We've not really seen that yet this cycle.' Crypto is no stranger to mass extinction events. The 2022 market crash, punctuated by the implosions of algorithmic stablecoin TerraUSD and Sam Bankman-Fried's FTX exchange, led to the demise of hundreds of projects. Thousands of coins still exist on their blockchains, with little or no activity — relegated to the status of 'ghost chains' in crypto parlance. What's different this time is that crypto is becoming a more regulated, institutionally-driven marketplace, and that stablecoins appear to be the only tokens with a real shot at achieving means-of-payment status, due to the fact that they eliminate volatility. In the past year alone, the market value of stablecoins has swelled by $47 billion, and some of the world's largest banks are entering the field. The Wall Street Journal reported this month that Inc. is studying a potential stablecoin. That's putting pressure on altcoin projects to find ways to shore up their status and appeal to a wider base of investors. 'I've talked to a couple of projects that have been thinking about merging foundations, putting it up for governance, saying, 'Hey, we can now be governed under this other authority' — that authority being another altcoin community,' said Kanyi Maqubela, managing partner at venture capital firm Kindred Ventures. The shifting tides are also reflected in corporate behavior. Modeled on Michael Saylor's Strategy, a new breed of Bitcoin accumulators has emerged. In April, a special-purpose acquisition company affiliated with Cantor Fitzgerald LP partnered with Tether Holdings SA and SoftBank to launch Twenty One Capital Inc., seeded with nearly $4 billion in Bitcoin. The Trump family, which is also getting involved in Bitcoin mining, has raised $2.3 billion via Trump Media & Technology Group Corp. to create a Bitcoin treasury. While similar vehicles have been set up recently to accumulate smaller tokens like Ether, Solana and BNB, they are much smaller. Glimmers of Hope Not all altcoins are floundering. Tokens like Maker and Hyperliquid that are linked to thriving decentralized-finance protocols have notched big gains this year. 'There's certainly a subset of the market doing incredibly well — generally companies with real businesses, real revenues, and those revenues are being used to buy back tokens,' said Jeff Dorman, chief investment officer of digital asset investment firm Arca. There's also the prospect of more favorable regulations. The potential for US Securities and Exchange Commission approval of ETFs backed by coins like Solana are stirring hopes of wider adoption. Another possible catalyst is the Digital Asset Market Clarity (CLARITY) Act, informally referred to as crypto's market structure bill. The CLARITY Act aims to provide a comprehensive regulatory framework, including delineating responsibilities between the Commodity Futures Trading Commission and the SEC. 'The Clarity Act has the potential to do for altcoins what ETFs did for Bitcoin and Ethereum: provide the regulatory legitimacy that unlocks real institutional capital,' said Ira Auerbach, a senior executive at Offchain Labs. Yet according to Maqubela, the issue ultimately boils down to utility. He compares Bitcoin to gold and Ether to copper — the former has a capped final supply and the latter's blockchain underpins much of crypto's functionality — and says most altcoins are stuck in a sort of twilight zone, underpinned by big promises and not much else. 'I think a lot of them are going to whittle down to zero because they were driven by speculation without that mimetic value like Bitcoin, and they tried to be utilitarian without achieving any real scale,' he said. America's Top Consumer-Sentiment Economist Is Worried How to Steal a House Inside Gap's Last-Ditch, Tariff-Addled Turnaround Push Apple Test-Drives Big-Screen Movie Strategy With F1 Does a Mamdani Victory and Bezos Blowback Mean Billionaires Beware? ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
