Yum China Holdings, Inc.

DB:0YU Stock Report

Market Cap: €17.2b

Yum China Holdings Valuation

Is 0YU undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 0YU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0YU (€45.02) is trading below our estimate of fair value (€50.32)

Significantly Below Fair Value: 0YU is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0YU?

Key metric: As 0YU is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0YU. This is calculated by dividing 0YU's market cap by their current earnings.
What is 0YU's PE Ratio?
PE Ratio20x
EarningsUS$893.00m
Market CapUS$17.88b

Price to Earnings Ratio vs Peers

How does 0YU's PE Ratio compare to its peers?

The above table shows the PE ratio for 0YU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.5x
TUI1 TUI
7x17.3%€3.8b
DRI Darden Restaurants
18.9x8.2%US$19.3b
DPZ Domino's Pizza
27.4x5.9%US$15.4b
QSP.UN Restaurant Brands International Limited Partnership
12.9xn/aCA$32.7b
0YU Yum China Holdings
20x8.8%€17.9b

Price-To-Earnings vs Peers: 0YU is expensive based on its Price-To-Earnings Ratio (20x) compared to the peer average (16.5x).

Price to Earnings Ratio vs Industry

How does 0YU's PE Ratio compare vs other companies in the European Hospitality Industry?

10 CompaniesPrice / EarningsEstimated GrowthMarket Cap
0YU 20.0xIndustry Avg. 17.3xNo. of Companies18PE01224364860+
10 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0YU is expensive based on its Price-To-Earnings Ratio (20x) compared to the European Hospitality industry average (17.4x).

Price to Earnings Ratio vs Fair Ratio

What is 0YU's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

0YU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20x
Fair PE Ratio30.3x

Price-To-Earnings vs Fair Ratio: 0YU is good value based on its Price-To-Earnings Ratio (20x) compared to the estimated Fair Price-To-Earnings Ratio (30.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 0YU forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€45.02
€53.63
+19.1%
16.1%€72.50€33.39n/a25
Nov ’25€40.39
€47.05
+16.5%
21.2%€69.87€32.18n/a25
Oct ’25€41.58
€41.88
+0.7%
19.5%€68.26€31.43n/a23
Sep ’25€30.30
€40.78
+34.6%
20.0%€68.56€31.57n/a23
Aug ’25€27.85
€46.07
+65.4%
21.6%€70.13€27.68n/a23
Jul ’25€29.33
€49.14
+67.5%
18.7%€71.01€28.03n/a23
Jun ’25€32.76
€49.69
+51.7%
17.6%€70.73€31.64n/a24
May ’25€35.99
€51.05
+41.9%
17.8%€71.08€31.80n/a24
Apr ’25€35.82
€52.16
+45.6%
16.8%€73.63€31.11n/a24
Mar ’25€39.69
€53.29
+34.3%
17.0%€74.22€31.36n/a24
Feb ’25€32.70
€54.89
+67.9%
18.7%€73.78€27.85n/a25
Jan ’25€38.14
€57.68
+51.2%
13.3%€72.88€39.72n/a25
Dec ’24€39.88
€58.75
+47.3%
12.9%€72.91€39.74n/a24
Nov ’24€43.00
€64.57
+50.2%
12.3%€75.70€41.26€40.3923
Oct ’24€52.16
€68.96
+32.2%
8.3%€78.78€46.89€41.5824
Sep ’24€49.28
€66.60
+35.1%
8.2%€76.99€45.83€30.3025
Aug ’24€53.86
€66.07
+22.7%
7.6%€76.48€48.26€27.8524
Jul ’24€51.60
€67.57
+31.0%
7.6%€76.96€48.56€29.3324
Jun ’24€52.40
€66.62
+27.1%
8.9%€76.62€48.34€32.7625
May ’24€54.48
€64.31
+18.0%
11.6%€82.09€40.59€35.9924
Apr ’24€57.93
€64.31
+11.0%
11.6%€82.09€40.59€35.8224
Mar ’24€54.85
€64.23
+17.1%
12.6%€83.22€41.14€39.6924
Feb ’24€56.61
€58.64
+3.6%
13.9%€76.47€34.59€32.7022
Jan ’24€52.73
€56.15
+6.5%
14.2%€78.45€35.49€38.1423
Dec ’23€51.86
€56.86
+9.6%
14.1%€80.76€36.53€39.8823
Nov ’23€43.42
€56.70
+30.6%
16.5%€85.08€29.98€43.0023

Analyst Forecast: Target price is less than 20% higher than the current share price.

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