YELP

The article presents a deep value investment case for Yelp. It argues that the market is overly pessimistic, focusing on the lack of a growth narrative while ignoring the company's strong and durable free cash flow generation, clean balance sheet, and high FCF yield. The author suggests that at its current valuation, Yelp is priced like a 'melting ice cube' rather than a stable, cash-harvesting platform, offering a significant margin of safety for value investors. The thesis is supported by an Intrinsic Value to Price (IV/P) of 1.30 and an Acquirer's Multiple of 6.5.

The author highlights Yelp's strong financial metrics (low EV/EBITDA, high ROIC, and FCF margin) but contrasts them with the stock's poor performance and negative market sentiment. The author questions whether the market is overlooking a fundamentally sound company or if there are hidden risks related to its business model in an AI-dominated world. The post invites discussion on whether Yelp is a value investment or a value trap.