For those who appreciate value investing, YELP INC (NYSE:YELP) is a compelling option with its solid fundamentals.

Our stock screener has singled out YELP INC (NYSE:YELP) as a stellar value proposition. NYSE:YELP not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

A Closer Look at Valuation for NYSE:YELP

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:YELP was assigned a score of 7 for valuation:

• Based on the Price/Earnings ratio, YELP is valued a bit cheaper than the industry average as 73.24% of the companies are valued more expensively.
• Compared to an average S&P500 Price/Earnings ratio of 29.35, YELP is valued a bit cheaper.
• YELP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. YELP is cheaper than 76.06% of the companies in the same industry.
• YELP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.10.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of YELP indicates a rather cheap valuation: YELP is cheaper than 80.28% of the companies listed in the same industry.
• Based on the Price/Free Cash Flow ratio, YELP is valued cheaply inside the industry as 84.51% of the companies are valued more expensively.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• YELP has an outstanding profitability rating, which may justify a higher PE ratio.
• YELP's earnings are expected to grow with 17.39% in the coming years. This may justify a more expensive valuation.

How do we evaluate the Profitability for NYSE:YELP?

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:YELP has earned a 8 out of 10:

• YELP's Return On Assets of 13.51% is amongst the best of the industry. YELP outperforms 90.14% of its industry peers.
• The Return On Equity of YELP (17.86%) is better than 90.14% of its industry peers.
• The Return On Invested Capital of YELP (15.82%) is better than 88.73% of its industry peers.
• The last Return On Invested Capital (15.82%) for YELP is above the 3 year average (11.39%), which is a sign of increasing profitability.
• YELP's Profit Margin of 9.41% is amongst the best of the industry. YELP outperforms 80.28% of its industry peers.
• In the last couple of years the Profit Margin of YELP has grown nicely.
• YELP has a Operating Margin of 11.12%. This is in the better half of the industry: YELP outperforms 77.46% of its industry peers.
• In the last couple of years the Operating Margin of YELP has grown nicely.
• The Gross Margin of YELP (91.24%) is better than 91.55% of its industry peers.

Health Assessment of NYSE:YELP

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:YELP has earned a 9 out of 10:

• An Altman-Z score of 6.50 indicates that YELP is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 6.50, YELP belongs to the best of the industry, outperforming 83.10% of the companies in the same industry.
• YELP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
• A Current Ratio of 3.34 indicates that YELP has no problem at all paying its short term obligations.
• YELP has a Current ratio of 3.34. This is in the better half of the industry: YELP outperforms 73.24% of its industry peers.
• YELP has a Quick Ratio of 3.34. This indicates that YELP is financially healthy and has no problem in meeting its short term obligations.
• The Quick ratio of YELP (3.34) is better than 73.24% of its industry peers.

What does the Growth looks like for NYSE:YELP

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:YELP has achieved a 5 out of 10:

• The Earnings Per Share has grown by an impressive 42.22% over the past year.
• The Earnings Per Share has been growing by 24.97% on average over the past years. This is a very strong growth
• Based on estimates for the next years, YELP will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.17% on average per year.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Our latest full fundamental report of YELP contains the most current fundamental analsysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.