Yum! Brands, Inc.

BMV:YUM * Stock Report

Market Cap: Mex$741.5b

Yum! Brands Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • 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 YUM * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: YUM * (MX$2810) is trading above our estimate of fair value (MX$2466.07)

Significantly Below Fair Value: YUM * is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for YUM *. This is calculated by dividing YUM *'s market cap by their current earnings.
What is YUM *'s PE Ratio?
PE Ratio24.2x
EarningsUS$1.53b
Market CapUS$36.94b

Price to Earnings Ratio vs Peers

How does YUM *'s PE Ratio compare to its peers?

The above table shows the PE ratio for YUM * vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15.8x
ALSEA * Alsea. de
12.7x24.7%Mex$36.5b
QSR Restaurant Brands International
17x10.8%US$30.1b
DRI Darden Restaurants
21.1x8.5%US$22.0b
QSP.UN Restaurant Brands International Limited Partnership
12.4xn/aCA$32.2b
YUM * Yum! Brands
24.2x7.9%Mex$36.9b

Price-To-Earnings vs Peers: YUM * is expensive based on its Price-To-Earnings Ratio (24.2x) compared to the peer average (15.8x).

Price to Earnings Ratio vs Industry

How does YUM *'s PE Ratio compare vs other companies in the South American Hospitality Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies4PE01224364860+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: YUM * is expensive based on its Price-To-Earnings Ratio (24.2x) compared to the South American Hospitality industry average (15x).

Price to Earnings Ratio vs Fair Ratio

What is YUM *'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.

YUM * PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.2x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate YUM *'s Price-To-Earnings Fair Ratio for valuation analysis.

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 YUM * forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
Mex$2,900.62
0%
5.9%Mex$3,185.56Mex$2,621.03n/a24
Dec ’25n/a
Mex$2,961.87
0%
5.8%Mex$3,257.55Mex$2,680.26n/a24
Nov ’25Mex$2,650.00
Mex$2,908.05
+9.7%
6.0%Mex$3,231.06Mex$2,592.82n/a24
Oct ’25Mex$2,745.10
Mex$2,812.35
+2.4%
5.8%Mex$3,079.98Mex$2,502.49n/a24
Sep ’25n/a
Mex$2,726.17
0%
5.9%Mex$2,991.58Mex$2,430.66n/a24
Aug ’25Mex$2,464.79
Mex$2,664.03
+8.1%
5.5%Mex$2,896.90Mex$2,343.35n/a24
Jul ’25n/a
Mex$2,694.00
0%
6.2%Mex$2,973.24Mex$2,345.35n/a24
Jun ’25n/a
Mex$2,417.77
0%
6.6%Mex$2,678.04Mex$2,112.49n/a23
May ’25n/a
Mex$2,460.45
0%
7.0%Mex$2,756.88Mex$2,161.26n/a24
Apr ’25n/a
Mex$2,433.48
0%
7.6%Mex$2,791.85Mex$2,135.94n/a23
Mar ’25n/a
Mex$2,445.47
0%
7.0%Mex$2,830.63Mex$2,165.60n/a24
Feb ’25n/a
Mex$2,435.26
0%
8.4%Mex$2,824.49Mex$1,997.81n/a24
Jan ’25n/a
Mex$2,407.48
0%
8.3%Mex$2,783.74Mex$2,018.21n/a23
Dec ’24n/a
Mex$2,375.46
0%
8.1%Mex$2,751.90Mex$1,995.13n/a23
Nov ’24n/a
Mex$2,489.00
0%
8.6%Mex$2,903.40Mex$2,048.41Mex$2,650.0023
Oct ’24n/a
Mex$2,546.19
0%
6.4%Mex$2,961.83Mex$2,259.89Mex$2,745.1022
Sep ’24Mex$2,173.50
Mex$2,546.19
+17.1%
6.4%Mex$2,961.83Mex$2,259.89n/a22
Aug ’24Mex$2,308.00
Mex$2,482.23
+7.5%
7.3%Mex$3,012.34Mex$2,221.39Mex$2,464.7922
Jul ’24Mex$2,374.08
Mex$2,530.40
+6.6%
6.6%Mex$2,954.34Mex$2,267.28n/a22
Jun ’24n/a
Mex$2,582.02
0%
6.5%Mex$3,019.18Mex$2,317.05n/a21
May ’24n/a
Mex$2,591.17
0%
7.2%Mex$3,057.09Mex$2,247.86n/a22
Apr ’24n/a
Mex$2,600.37
0%
7.2%Mex$3,063.81Mex$2,252.80n/a21
Mar ’24Mex$2,380.30
Mex$2,645.07
+11.1%
7.0%Mex$3,123.60Mex$2,296.76n/a23
Feb ’24n/a
Mex$2,632.01
0%
8.6%Mex$3,153.23Mex$2,252.30n/a23
Jan ’24Mex$2,527.99
Mex$2,708.63
+7.1%
8.0%Mex$3,161.06Mex$2,370.79n/a23
Dec ’23n/a
Mex$2,580.09
0%
7.3%Mex$3,086.42Mex$2,314.81n/a23

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 Analysis2024/12/22 12:26
End of Day Share Price 2024/12/09 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! Brands, Inc. is covered by 54 analysts. 25 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
John StaszakArgus Research Company
Edward LewisAtlantic Equities LLP
David TarantinoBaird