YELP EV/EBITDA Analysis

EV/EBITDA (enterprise value divided by earnings before interest, taxes, depreciation, and amortization) compares a company’s total value to its cash operating profit; a lower multiple generally means the stock is cheaper relative to its earnings power.

At 6.9x, Yelp’s multiple is well below the sector median of 13.5x, placing it in the 18th percentile among sector peers — meaning it trades at a discount compared to most similar companies. The metric has been increasing, rising 7.1% quarter over quarter (most recent value 6.9x versus 6.4x the prior quarter), though year-over-year data is not available. A low valuation combined with an upward trend suggests the market is beginning to assign a higher multiple to Yelp, which could signal improving fundamentals or sentiment — but an investor should also consider that further increases may erode the discount. This mixed picture — cheap level but rising trajectory — aligns with the overall NEUTRAL verdict, as the low multiple offers a potential opportunity that is partially offset by the risk of the trend narrowing that advantage.

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