Yext (YEXT:NYS) Fundamental Valuation Report

Fundamental Valuation Report


Technology:Software – Infrastructure

This Report was generated using the valuation tools available on For a free 30 day trial click here.

Close Price/Date
$14.66 (USD) 09/23/2020

Weighted Valuation
$18.37 (USD)

Overall Rating
Undervalued by 25.3%

Valuation Models Comparables: $18.37 (USD)
Valuation Methods This company is:
Cash Flow: Overvalued on a Cash Flow Valuation
Comparable Company: Undervalued on a Comparable Valuation
Asset: Undervalued on an Asset Valuation
According to Analyst consensus at $21.50 this stock is Undervalued

Company Overview (YEXT:NYS USD)

Price 14.66
Range 14.60 – 15.67
52 week 8.83 – 20.13
Open 15.60
Vol / Avg. 1.2M/1.19M
Mkt cap 1.75B
P/E 0.00
Div/yield 0.00/0.00
EPS -1.09
Shares 119.61M
Beta 0.00

Company Description

Yext Inc provides a knowledge engine platform that lets businesses manage their digital knowledge in the cloud and sync it to over 100 services including Apple Maps, Bing, Cortana, Facebook, Google, Google Maps, Instagram, Siri and Yelp. Digital knowledge is the structured information that a business wants to make publicly accessible. The company also makes search intelligent by helping to provide precise, accurate and current answers to location-based queries that are conducted across the web and mobile applications and voice and artificial intelligence, or AI, engines. The company derives its revenues primarily from subscription services.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for YEXT:NYS

Using a discounted cash flow model we generated an intrinsic value of $0.09 (USD) for YEXT:NYS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

YEXT:NYS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $0.09 1% 5% 1% 5%
WACC (or Ke) 11.50 $0.13 $0.06
Terminal Growth Rate 3.00 $0.07 $0.11
Tax Rate 0.27 $0.01 $0.17
Cash Flow -13,786,928 $0.15 $0.04
Capital Expenditures 0 $0.09 $0.09
Long Term Debt 0 $0.09 $0.09

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $6.96 (USD) for YEXT:NYS. We also generated a valuation of $18.37 (USD) using other metrics and comparables.
The comparable companies were Bottomline Technologies (EPAY:NAS), Verint Systems (VRNT:NAS), Zix (ZIXI:NAS), CSG Systems International (CSGS:NAS) and J2 Global (JCOM:NAS).

Company YEXT:NYS End Date Value
Earnings/Share ($1.11) (USD)
Book Value/Share $1.62 (USD)
Sales/Share $2.86 (USD)
Cash Flow/Share ($0.31) (USD)
EBITDA/Share ($0.87) (USD)
Price Based on Comps Adjustment Factor (%)
$0.00 (USD) 0.0
$7.27 (USD) 0.0
$6.65 (USD) 0.0
($1.07) (USD) 0.0
$0.00 (USD) 0.0
0.00 PE Ratio 75.23 0.00 190.13 0.00 17.02 18.55
9.06 PB Ratio 4.50 4.72 2.55 9.28 3.33 2.60
5.13 PS Ratio 2.33 3.91 2.49 1.55 1.31 2.38
0.00 PCF Ratio 11.76 17.80 11.35 14.55 7.48 7.61
0.00 EV to EBITDA 19.04 42.05 18.64 17.39 9.01 8.10


Using a multiples approach we generated a valuation of  $20.38 (USD) for YEXT:NYS

Company YEXT:NYS End Date Value
Earnings/Share ($1.11) (USD)
Book Value/Share $1.62 (USD)
Sales/Share $2.86 (USD)
Cash Flow/Share ($0.31) (USD)
EBITDA/Share ($0.87) (USD)
Price Based on Comps Adjustment Factor
$0.00 (USD) 0
$19.37 (USD) 0
$21.40 (USD) 0
$0.00 (USD) 0
$0.00 (USD) 0
Ratios Ratio Average
PE Ratio 0.00
PB Ratio 11.97
PS Ratio 7.49
PCF Ratio 411.93
EV to EBITDA 0.00

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  YEXT:NYS for the last 3 years was  11.97

We ran the Adjusted Book Value for  YEXT:NYS and generated a book value of  $1.67 (USD)
By multiplying these we get an adjusted valuation of  $20.00 (USD)

Analyst Data

In the Stockcalc database there are 2 analysts that provide a valuation for YEXT:NYS. The 2 analysts have a concensus valuation for YEXT:NYS for 2021 of $21.50 (USD).


Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
2 0 0 5.0000 Buy 2020-9-22

Current Price: 14.66 USD

Analyst Consensus
USD Millions 2021 2022 2023
Mean EPS -0.37 -0.33 -0.26
# EPS Analysts 2 2 2
Mean Revenue 354.70 425.50 511.50
# Revenue Analysts 2 2 2
Mean Target Price 21.50
Mean Cash Flow -0.05 -0.02
Mean Net Income -43.80 -39.90 -32.40
Mean Debt Outstanding
Mean Tax Rate
Mean Growth Rate
Mean Capital Expenditure 71.30 8.40 10.10

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

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