Yum China Holdings, Inc.

DB:0YU Stock Report

Market Cap: €16.5b

Yum China Holdings Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 (€44.11) is trading below our estimate of fair value (€50.74)

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 Ratio19.3x
EarningsUS$893.00m
Market CapUS$17.23b

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 Average15.3x
TUI1 TUI
8x16.5%€4.1b
DPZ Domino's Pizza
25.8x5.7%US$14.8b
QSR Restaurant Brands International
15.8x10.1%US$28.1b
QSP.UN Restaurant Brands International Limited Partnership
11.6xn/aCA$30.2b
0YU Yum China Holdings
19.3x8.8%€17.2b

Price-To-Earnings vs Peers: 0YU is expensive based on its Price-To-Earnings Ratio (19.3x) compared to the peer average (15.4x).

Price to Earnings Ratio vs Industry

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

11 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies22PE01632486480+
11 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0YU is expensive based on its Price-To-Earnings Ratio (19.3x) compared to the European Hospitality industry average (16.5x).

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 Ratio19.3x
Fair PE Ratio29.9x

Price-To-Earnings vs Fair Ratio: 0YU is good value based on its Price-To-Earnings Ratio (19.3x) compared to the estimated Fair Price-To-Earnings Ratio (29.9x).

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€44.11
€55.42
+25.6%
13.9%€72.85€33.55n/a25
Jan ’26€46.75
€54.82
+17.3%
15.6%€72.93€33.59n/a25
Dec ’25€43.26
€52.79
+22.0%
15.5%€70.80€32.61n/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€39.72€46.7525
Dec ’24€39.88
€58.75
+47.3%
12.9%€72.91€39.74€43.2624
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

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/29 14:28
End of Day Share Price 2025/01/29 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Yum China Holdings, Inc. is covered by 62 analysts. 36 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Hong Xing PanABCI Securities Company Limited
Edward LewisAtlantic Equities LLP
Jiangqiao TongBOCI Research Ltd.