How does the $9.00 per share cash offer compare to Yext's current market price and valuation multiples, and what premium does it represent?

Offer vs. market price and valuation multiples

At the time of the proposal Yext was trading roughly $7.00 – $7.30 per share on the NYSE, giving the $9.00 cash bid a ~25‑30 % premium to the prevailing price. On a relative‑valuation basis the stock was priced at about 6.5‑7.0 × forward revenue (EV/Revenue) and ≈‑15 × forward EBITDA (the company’s EBITDA is still negative, so the multiple is a proxy). At $9.00 per share the implied EV/Revenue rises to ≈8.5‑9.0 ×, and the implied forward EBITDA multiple improves to roughly ‑12 ×, reflecting a modest uplift in perceived value but still a discount to peers that trade at 10‑12 × revenue.

Trading implications

The premium is sizeable enough to attract arbitrage interest, but the modest uplift in multiples suggests the market may view the offer as a “fair‑price” rather than a blockbuster takeover premium. In a thinly‑traded, low‑float stock like Yext, the bid can trigger a short‑cover rally and a tightening of the bid‑ask spread. Traders could consider a long position at current levels to capture the premium if the deal clears regulatory and shareholder approval, while keeping a tight stop (e.g., $6.80) in case the bid collapses or a higher competing offer fails to materialize. For risk‑averse investors, a sell‑side “buy‑the‑rumor, sell‑the‑news” play—selling near $9.00 after the announcement and re‑entering if the price pulls back on any deal‑related uncertainty—may be appropriate.