Yum China Holdings, Inc.

SHSC:9987 Stock Report

Market Cap: HK$135.9b

Yum China Holdings Valuation

Is 9987 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow Value

What is the Fair Price of 9987 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: 9987 (HK$383) is trading below our estimate of future cash flow value (HK$595)

Significantly Below Future Cash Flow Value: 9987 is trading below future cash flow value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 9987?

Key metric: As 9987 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 9987. This is calculated by dividing 9987's market cap by their current earnings.
What is 9987's PE Ratio?
PE Ratio19.3x
EarningsUS$904.00m
Market CapUS$17.43b

Price to Earnings Ratio vs Peers

How does 9987's PE Ratio compare to its peers?

The above table shows the PE ratio for 9987 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.6x
2097 MIXUE Group
27.8x14.19%HK$163.4b
6862 Haidilao International Holding
17.9x8.51%HK$88.9b
1364 Guming Holdings
26.8x12.08%HK$71.2b
999 Xiaocaiyuan International Holding
13.8x19.27%HK$10.6b
9987 Yum China Holdings
19.3x8.40%HK$17.4b

Price-To-Earnings vs Peers: 9987 is good value based on its Price-To-Earnings Ratio (19.3x) compared to the peer average (21.6x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

How does 9987's PE Ratio compare vs other companies in the HK Hospitality Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
1180 Paradise Entertainment
1.6x-52.14%US$86.36m
1383 LET Group Holdings
1.3xn/aUS$38.09m
1655 Okura Holdings
1.6xn/aUS$13.84m
559 DeTai New Energy Group
1.6xn/aUS$6.71m
9987 19.3xIndustry Avg. 17.5xNo. of Companies7PE01020304050+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 9987 is expensive based on its Price-To-Earnings Ratio (19.3x) compared to the Hong Kong Hospitality industry average (17.5x).

Price to Earnings Ratio vs Fair Ratio

What is 9987'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.

9987 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.3x
Fair PE Ratio16.3x

Price-To-Earnings vs Fair Ratio: 9987 is expensive based on its Price-To-Earnings Ratio (19.3x) compared to the estimated Fair Price-To-Earnings Ratio (16.3x).

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 9987 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$383.00
HK$453.25
+18.34%
8.70%HK$592.60HK$413.26n/a22
Jan ’27HK$368.60
HK$451.16
+22.40%
8.75%HK$590.57HK$411.85n/a22
Dec ’26HK$376.40
HK$451.42
+19.93%
8.76%HK$591.38HK$412.41n/a22
Nov ’26HK$334.60
HK$451.37
+34.90%
8.61%HK$590.59HK$411.86n/a22
Oct ’26HK$341.00
HK$454.07
+33.16%
8.32%HK$591.48HK$412.48n/a22
Sep ’26HK$349.80
HK$455.95
+30.34%
8.11%HK$592.55HK$414.00n/a22
Aug ’26HK$367.80
HK$456.93
+24.23%
8.41%HK$596.60HK$408.20n/a22
Jul ’26HK$351.40
HK$461.84
+31.43%
9.55%HK$596.60HK$408.20n/a23
Jun ’26HK$346.60
HK$456.99
+31.85%
8.33%HK$595.76HK$407.62n/a23
May ’26HK$362.60
HK$463.11
+27.72%
8.91%HK$589.52HK$403.35n/a25
Apr ’26HK$405.40
HK$463.02
+14.21%
11.81%HK$591.23HK$272.28n/a25
Mar ’26HK$384.40
HK$461.96
+20.18%
11.84%HK$591.07HK$272.20n/a25
Feb ’26HK$353.00
HK$450.43
+27.60%
13.94%HK$592.09HK$272.67n/a25
Jan ’26HK$374.20
HK$443.75
+18.59%
15.57%HK$590.33HK$271.86HK$368.6025
Dec ’25HK$355.00
HK$440.97
+24.22%
15.49%HK$591.38HK$272.35HK$376.4025
Nov ’25HK$343.80
HK$397.84
+15.72%
21.17%HK$590.82HK$272.09HK$334.6025
Oct ’25HK$368.20
HK$362.47
-1.56%
19.53%HK$590.79HK$272.08HK$341.0023
Sep ’25HK$268.20
HK$352.11
+31.29%
19.95%HK$591.90HK$272.59HK$349.8023
Aug ’25HK$235.00
HK$389.85
+65.90%
21.60%HK$593.47HK$234.27HK$367.8023
Jul ’25HK$241.40
HK$410.68
+70.12%
18.67%HK$593.49HK$234.27HK$351.4023
Jun ’25HK$270.80
HK$417.33
+54.11%
17.62%HK$594.06HK$265.76HK$346.6024
May ’25HK$294.40
HK$427.06
+45.06%
17.77%HK$594.59HK$266.00HK$362.6024
Apr ’25HK$308.20
HK$443.38
+43.86%
16.75%HK$625.86HK$264.43HK$405.4024
Mar ’25HK$343.00
HK$449.21
+30.97%
16.96%HK$625.64HK$264.33HK$384.4024
Feb ’25HK$272.80
HK$465.29
+70.56%
18.70%HK$625.44HK$236.10HK$353.0025
Jan ’25HK$332.20
HK$493.86
+48.66%
13.27%HK$623.99HK$340.07HK$374.2025
HK$450.94
Fair Value
15.1% undervalued intrinsic discount
22
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/01/23 07:36
End of Day Share Price 2026/01/23 00:00
Earnings2025/09/30
Annual Earnings2024/12/31

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.

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 Github.

Analyst Sources

Yum China Holdings, Inc. is covered by 51 analysts. 30 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Ali DibadjBernstein
Chen LuoBofA Global Research
Kaiwen SunCCB International Securities Limited