Is Yelp, Inc. overvalued or undervalued?

As of 8 September 2025, Yelp, Inc. has moved from a fair to attractive valuation grade, indicating a more favorable assessment of its stock. The company appears to be undervalued, particularly when considering its P/E ratio of 16, which is lower than the peer average of 13.15 for similar companies like Match Group, Inc. at 17.35 and XP, Inc. at 11.30. Additionally, Yelp's EV to EBITDA ratio stands at 8.70, which is competitive compared to its peers, and its PEG ratio is 1.58, suggesting reasonable growth expectations relative to its earnings.
In terms of returns, Yelp has shown a mixed performance against the S&P 500, with a year-to-date return of -16.98% compared to the S&P's 12.22%. Over the longer term, however, Yelp's five-year return of 56.50% is significantly lower than the S&P's 96.61%, indicating potential for recovery and growth. Overall, Yelp's attractive valuation metrics and competitive positioning suggest it may be a good investment opportunity at its current price of 32.13.