Discounted Cash Flow

Yelp Inc.

YELP · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $713.1m $-4.7m $103.9m -0.7% $-0.06
2017 $846.8m (18.8%) $152.9m (3373.2%) $152.0m (46.3%) 18.1% (2856.2%) $1.87 (3216.7%)
2018 $942.8m (11.3%) $55.4m (-63.8%) $135.3m (-11.0%) 5.9% (-67.5%) $0.66 (-64.7%)
2019 $1.0b (7.6%) $40.9m (-26.1%) $167.3m (23.6%) 4.0% (-31.3%) $0.55 (-16.7%)
2020 $872.9m (-13.9%) $-19.4m (-147.5%) $144.7m (-13.5%) -2.2% (-155.2%) $-0.27 (-149.1%)
2021 $1.0b (18.2%) $39.7m (304.2%) $184.4m (27.4%) 3.8% (272.8%) $0.53 (296.3%)
2022 $1.2b (15.7%) $36.3m (-8.4%) $160.3m (-13.0%) 3.0% (-20.8%) $0.51 (-3.8%)
2023 $1.3b (12.0%) $99.2m (172.9%) $279.4m (74.3%) 7.4% (143.6%) $1.43 (180.4%)
2024 $1.4b (5.6%) $132.8m (34.0%) $248.5m (-11.1%) 9.4% (26.8%) $1.97 (37.8%)
2025 $1.5b (3.7%) $145.6m (9.6%) $323.7m (30.3%) 9.9% (5.6%) $2.30 (16.8%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model