Discounted Cash Flow (DCF) Analysis Levered

Yelp Inc. (YELP)

$42.11

+0.62 (+1.49%)

All numbers are in Millions, Currency in USD

Stock DCF: 34.57 | 42.11 | overvalue

Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	942.77	1,014.19	872.93	1,031.84	1,193.51	1,275.62	1,363.37	1,457.17	1,557.42	1,664.56
Revenue (%)
Operating Cash Flow	160.19	204.78	176.70	212.66	192.31	240.19	256.72	274.38	293.25	313.43
Operating Cash Flow (%)
Capital Expenditure	-44.97	-37.52	-38.13	-28.28	-31.98	-46.58	-49.79	-53.21	-56.87	-60.78
Capital Expenditure (%)
Free Cash Flow	115.22	167.26	138.57	184.37	160.33	193.61	206.93	221.17	236.38	252.64

Weighted Average Cost Of Capital

Share price	$ 42.11
Beta	1.464
Diluted Shares Outstanding	78.62
Cost of Debt
Tax Rate	45.57
After-tax Cost of Debt	-3.63%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.454
Total Debt	126.33
Total Equity	3,310.52
Total Capital	3,436.85
Debt Weighting	3.68
Equity Weighting	96.32
Wacc

Build Up Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	942.77	1,014.19	872.93	1,031.84	1,193.51	1,275.62	1,363.37	1,457.17	1,557.42	1,664.56
Operating Cash Flow	160.19	204.78	176.70	212.66	192.31	240.19	256.72	274.38	293.25	313.43
Capital Expenditure	-44.97	-37.52	-38.13	-28.28	-31.98	-46.58	-49.79	-53.21	-56.87	-60.78
Free Cash Flow	115.22	167.26	138.57	184.37	160.33	193.61	206.93	221.17	236.38	252.64
WACC
PV LFCF						174.58	168.25	162.15	156.27	150.61
SUM PV LFCF										811.87

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	10.90
Free cash flow (t + 1)	257.70
Terminal Value	2,895.46
Present Value of Terminal Value	1,726.08

Intrinsic Value

Enterprise Value	2,537.95
Net Debt	-180.04
Equity Value	2,717.99
Shares Outstanding	78.62
Equity Value Per Share	34.57