Yum! Brands, Inc.

BMV:YUM * Stock Report

Market Cap: Mex$742.4b

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$2650) is trading above our estimate of fair value (MX$2280.76)

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$36.88b

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 Average16x
ALSEA * Alsea. de
13.4x23.2%Mex$38.6b
QSR Restaurant Brands International
17.7x10.9%US$31.3b
QSP.UN Restaurant Brands International Limited Partnership
12.9xn/aCA$32.7b
YUMC Yum China Holdings
20.2x8.8%US$18.0b
YUM * Yum! Brands
24.2x8.0%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 (16x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies3PE01224364860+
3 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 (17.1x).

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$2,931.98
0%
5.7%Mex$3,221.40Mex$2,650.52n/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
Nov ’23n/a
Mex$2,620.67
0%
6.8%Mex$2,951.55Mex$2,353.26n/a23

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

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