Discounted Cash Flow (DCF) Analysis Levered

Yelp Inc. (YELP)

$34.14

+0.83 (+2.49%)

All numbers are in Millions, Currency in USD

Stock DCF: 41.01 | 34.14 | undervalue

Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	1,014.19	872.93	1,031.84	1,193.51	1,272.85	1,357.46	1,447.70	1,543.94	1,646.58	1,756.04
Revenue (%)
Operating Cash Flow	204.78	176.70	212.66	192.31	245.52	261.84	279.25	297.81	317.61	338.72
Operating Cash Flow (%)
Capital Expenditure	-37.52	-38.13	-28.28	-31.98	-42.92	-45.77	-48.82	-52.06	-55.52	-59.21
Capital Expenditure (%)
Free Cash Flow	167.26	138.57	184.37	160.33	202.60	216.07	230.43	245.75	262.09	279.51

Weighted Average Cost Of Capital

Share price	$ 34.14
Beta	1.451
Diluted Shares Outstanding	78.62
Cost of Debt
Tax Rate	45.57
After-tax Cost of Debt	2.72%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.542
Total Debt	116.21
Total Equity	2,683.95
Total Capital	2,800.16
Debt Weighting	4.15
Equity Weighting	95.85
Wacc

Build Up Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	1,014.19	872.93	1,031.84	1,193.51	1,272.85	1,357.46	1,447.70	1,543.94	1,646.58	1,756.04
Operating Cash Flow	204.78	176.70	212.66	192.31	245.52	261.84	279.25	297.81	317.61	338.72
Capital Expenditure	-37.52	-38.13	-28.28	-31.98	-42.92	-45.77	-48.82	-52.06	-55.52	-59.21
Free Cash Flow	167.26	138.57	184.37	160.33	202.60	216.07	230.43	245.75	262.09	279.51
WACC
PV LFCF					202.60	196.03	189.68	183.53	177.58	171.83
SUM PV LFCF										918.65

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	10.22
Free cash flow (t + 1)	285.10
Terminal Value	3,468.35
Present Value of Terminal Value	2,132.16

Intrinsic Value

Enterprise Value	3,050.82
Net Debt	-173.09
Equity Value	3,223.91
Shares Outstanding	78.62
Equity Value Per Share	41.01