Is Yelp, Inc. overvalued or undervalued?

As of 24 October 2025, Yelp, Inc. has moved from fair to attractive in its valuation grade, indicating a more favorable assessment. 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 Yelp itself, and the EV to EBITDA ratio of 8.70, which also compares favorably against peers like Match Group, Inc. with an EV to EBITDA of 12.93. Additionally, Yelp's ROCE stands at a strong 43.66%, further supporting its attractive valuation.
In terms of peer comparison, XP, Inc. is classified as very attractive with a P/E of 11.30, while Match Group, Inc. is deemed risky with a P/E of 17.35. Despite Yelp's recent struggles reflected in its year-to-date return of -14.60% compared to the S&P 500's 15.47%, its long-term performance over five years shows a gain of 57.53%, suggesting potential for recovery and growth.