Is Yelp, Inc. overvalued or undervalued?

As of 24 October 2025, Yelp, Inc. has moved from a fair to attractive valuation grade, indicating a shift towards being undervalued. The company is currently considered attractive with a P/E ratio of 16, an EV to EBITDA ratio of 8.70, and a PEG ratio of 1.58, which suggests it is trading at a reasonable valuation compared to its growth prospects.
In comparison to its peers, Yelp's P/E ratio is lower than Match Group, Inc. at 17.35 and higher than XP, Inc. at 11.30, highlighting a competitive position within the industry. Additionally, Yelp's ROCE of 43.66% and ROE of 20.17% reflect strong profitability metrics relative to its peers. Despite recent underperformance, with a year-to-date return of -14.60% compared to the S&P 500's 15.47%, the attractive valuation suggests potential for recovery and growth.