Zillow Inc (Z), Yelp Inc (YELP), VistaPrint Limited (VPRT): Friday’s Top Upgrades (and Downgrades)

VistaPrint prints money
Finally, we turn — with some trepidation, I admit — to the one Internet stock that even Barclays has some worries about. And we wonder… if even Zillow and Yelp Inc (NYSE:YELP) aren’t badly enough overvalued to frighten away the Brit banker, how bad must VistaPrint Limited (NASDAQ:VPRT) be to earn the stock an “underweight” rating from Barclays?

Bad enough, as it turns out — but perhaps not as bad as you might think.

VistaPrint Limited (NASDAQ:VPRT) shares cost a bit over $54 today, which works out to 64 times earnings — quite a pretty penny given that most Wall Street analysts seeing the company growing earnings “only” 22% per year over the next five years. But in stark contrast to the companies Barclays likes, VistaPrint Limited (NASDAQ:VPRT) is actually doing a better job of generating cash profits than it’s allowed to report as accounting profits under GAAP.

Free cash flow at VistaPrint Limited (NASDAQ:VPRT) amounted to $61 million over the past year, or more than twice the company’s reported $29.4 million in GAAP earnings. That’s not quite enough to make the stock “cheap,” but it’s enough to pull VistaPrint’s price-to-free cash flow ratio back down to about 29 — which could be almost reasonable assuming 22% annualized growth.

When you get right down to it though, even if VistaPrint Limited (NASDAQ:VPRT) is the least absurdly overvalued of these Internet stocks, it’s still not cheap enough to buy.

The article Friday’s Top Upgrades (and Downgrades) originally appeared on Fool.com and is written by Rich Smith.

Motley Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends Vistaprint and Zillow. The Motley Fool owns shares of Zillow.

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