How to buy Yelp stock - 08 March

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How to buy Yelp stock

Own Yelp stock in just a few minutes.

Fact checked

Yelp Inc is an internet content & information business based in the US. Yelp shares (YELP) are listed on the NYSE and all prices are listed in US Dollars. Yelp employs 3,900 staff and has a trailing 12-month revenue of around USD$872.9 million.

How to buy shares in Yelp

  1. Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Yelp. Find the stock by name or ticker symbol: YELP. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Yelp reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. Weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of Yelp, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Yelp. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

Yelp share price

Use our graph to track the performance of YELP stocks over time.

Yelp shares at a glance

Information last updated 2021-03-03.
52-week rangeUSD$12.89 - USD$39.95
50-day moving average USD$34.9167
200-day moving average USD$27.5571
Wall St. target priceUSD$36.8
PE ratio 92.1786
Dividend yield N/A (0%)
Earnings per share (TTM) USD$0.31

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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

Is it a good time to buy Yelp stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

Is Yelp under- or over-valued?

Valuing Yelp stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Yelp's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Yelp's P/E ratio

Yelp's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 92x. In other words, Yelp shares trade at around 92x recent earnings.

That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.

Yelp's PEG ratio

Yelp's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 0.4013. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Yelp's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Yelp's EBITDA

Yelp's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$15.7 million.

The EBITDA is a measure of a Yelp's overall financial performance and is widely used to measure a its profitability.

Yelp financials

Revenue TTM USD$872.9 million
Gross profit TTM USD$815.7 million
Return on assets TTM -1.96%
Return on equity TTM -2.41%
Profit margin -2.22%
Book value $11.353
Market capitalisation USD$2.8 billion

TTM: trailing 12 months

Shorting Yelp shares

There are currently 4.8 million Yelp shares held short by investors – that's known as Yelp's "short interest". This figure is 30.9% down from 6.9 million last month.

There are a few different ways that this level of interest in shorting Yelp shares can be evaluated.

Yelp's "short interest ratio" (SIR)

Yelp's "short interest ratio" (SIR) is the quantity of Yelp shares currently shorted divided by the average quantity of Yelp shares traded daily (recently around 1.3 million). Yelp's SIR currently stands at 3.56. In other words for every 100,000 Yelp shares traded daily on the market, roughly 3560 shares are currently held short.

However Yelp's short interest can also be evaluated against the total number of Yelp shares, or, against the total number of tradable Yelp shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Yelp's short interest could be expressed as 0.06% of the outstanding shares (for every 100,000 Yelp shares in existence, roughly 60 shares are currently held short) or 0.0769% of the tradable shares (for every 100,000 tradable Yelp shares, roughly 77 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Yelp.

Find out more about how you can short Yelp stock.

Yelp share dividends

We're not expecting Yelp to pay a dividend over the next 12 months.

Yelp share price volatility

Over the last 12 months, Yelp's shares have ranged in value from as little as $12.89 up to $39.95. A popular way to gauge a stock's volatility is its "beta".

YELP.US volatility(beta: 1.81)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Yelp's is 1.8079. This would suggest that Yelp's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).

Yelp overview

Yelp Inc. operates a platform that connects consumers with local businesses in the United States, Canada, and internationally. The company's platform covers various local business categories, including restaurants, shopping, home and local services, beauty and fitness, health, and other categories. It provides free and paid advertising products to businesses, as well as enables businesses to deliver targeted search advertising to local audiences through its Website and mobile application; and business listing products. The company's Yelp platform enables consumers to order flowers, purchase event tickets, and book spa and salon appointments. In addition, it offers Yelp Deals that allow local business owners to create promotional discounted deals for their products and services; and Gift Certificates. Further, the company provides other services comprising Yelp Reservations that provide restaurants, nightlife, and other venues with the ability to offer online reservations directly from their Yelp business listing pages; Yelp Waitlist, a subscription-based waitlist management solution that allows consumers to check wait times and join waitlists remotely, as well as businesses to manage seating and server rotation; and Yelp Knowledge program that offers business owners local analytics and insights through access to its historical data and other proprietary content. Additionally, it provides content licensing, as well as allows third-party data providers to update and manage business listing information on behalf of businesses. The company offers its products directly through its sales force; indirectly through partners; and online through its Website, as well as non-advertising partner arrangements. It has strategic partnership with Grubhub for providing consumers with a selection of restaurants and delivery options. Yelp Inc. was founded in 2004 and is headquartered in San Francisco, California.

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