YELP
research-grade BUY candidateYELP INC.·Consumer Cyclical
Good business at a fair-to-cheap price.
78/100B
Price at last run$25.87as of Jul 8, 2026
quality large-capHigh returns on capitalROIC ~28% — it earns well on the money it puts to work.
Strong gross margins93% gross margin.
Generates real cash21.0% free-cash-flow yield — profits you can actually bank.
Margin of safetyTrades ~30% below our fair-value estimate.
Clean balance sheetLow leverage (debt/equity 0.00).
Catalystnone yet
✕Why not
The honest case against — what most tools hideWhat keeps us out
- The discount closing without the business improving.
- Margins or returns on capital deteriorating.
Patience price & distance
as of Jul 8, 2026 runThe patience price is where value discipline would let the council in — deliberately strict: we'd rather miss ten winners than own one loser.
Margin of safety: 30.2% discount to our patience price. A target is an estimate, not a promise — markets can stay wrong for a long time, and the estimate can be wrong too.
Catalyst
none yet
A catalyst is a plausible reason the gap could close — never a certainty.