Yum! Brands Valuation

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

Below Fair Value: YUM ($126.46) is trading below our estimate of fair value ($139.72)

Significantly Below Fair Value: YUM 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 YUM?

Other financial metrics that can be useful for relative valuation.

YUM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue6.8x
Enterprise Value/EBITDA18.5x
PEG Ratio3x

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 Average29x
QSR Restaurant Brands International
18.3x12.0%US$32.7b
DRI Darden Restaurants
16.2x7.3%US$17.1b
CMG Chipotle Mexican Grill
55.7x16.3%US$73.6b
DPZ Domino's Pizza
25.8x6.6%US$14.5b
YUM Yum! Brands
22.1x7.3%US$36.2b

Price-To-Earnings vs Peers: YUM is good value based on its Price-To-Earnings Ratio (22.1x) compared to the peer average (29x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a21.4%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a21.4%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: YUM is expensive based on its Price-To-Earnings Ratio (22.1x) compared to the US Hospitality industry average (19.7x).


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 Ratio22.1x
Fair PE Ratio24x

Price-To-Earnings vs Fair Ratio: YUM is good value based on its Price-To-Earnings Ratio (22.1x) compared to the estimated Fair Price-To-Earnings Ratio (24x).


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
CurrentUS$126.46
US$144.55
+14.3%
5.7%US$161.00US$127.00n/a24
Jul ’25US$129.70
US$145.88
+12.5%
6.2%US$161.00US$127.00n/a24
Jun ’25US$137.43
US$145.35
+5.8%
6.6%US$161.00US$127.00n/a23
May ’25US$135.33
US$144.58
+6.8%
7.0%US$162.00US$127.00n/a24
Apr ’25US$140.47
US$144.69
+3.0%
7.6%US$166.00US$127.00n/a23
Mar ’25US$137.42
US$143.41
+4.4%
7.0%US$166.00US$127.00n/a24
Feb ’25US$130.45
US$141.40
+8.4%
8.4%US$164.00US$116.00n/a24
Jan ’25US$130.66
US$138.37
+5.9%
8.3%US$160.00US$116.00n/a23
Dec ’24US$127.33
US$138.11
+8.5%
8.1%US$160.00US$116.00n/a23
Nov ’24US$121.30
US$139.73
+15.2%
8.6%US$163.00US$115.00n/a23
Oct ’24US$124.94
US$148.72
+19.0%
6.4%US$173.00US$132.00n/a22
Sep ’24US$129.64
US$148.72
+14.7%
6.4%US$173.00US$132.00n/a22
Aug ’24US$136.36
US$147.50
+8.2%
7.3%US$179.00US$132.00n/a22
Jul ’24US$138.55
US$147.32
+6.3%
6.6%US$172.00US$132.00US$129.7022
Jun ’24US$132.25
US$147.10
+11.2%
6.5%US$172.00US$132.00US$137.4321
May ’24US$142.23
US$144.09
+1.3%
7.2%US$170.00US$125.00US$135.3322
Apr ’24US$132.08
US$144.29
+9.2%
7.2%US$170.00US$125.00US$140.4721
Mar ’24US$126.20
US$143.96
+14.1%
7.0%US$170.00US$125.00US$137.4223
Feb ’24US$129.01
US$140.23
+8.7%
8.6%US$168.00US$120.00US$130.4523
Jan ’24US$128.08
US$137.10
+7.0%
8.0%US$160.00US$120.00US$130.6623
Dec ’23US$129.19
US$133.75
+3.5%
7.3%US$160.00US$120.00US$127.3323
Nov ’23US$118.15
US$131.41
+11.2%
6.8%US$148.00US$118.00US$121.3023
Oct ’23US$106.34
US$134.35
+26.3%
6.7%US$148.00US$120.00US$124.9424
Sep ’23US$114.26
US$134.23
+17.5%
7.0%US$149.00US$120.00US$129.6423
Aug ’23US$122.74
US$134.58
+9.6%
7.0%US$151.00US$120.00US$136.3623
Jul ’23US$116.71
US$134.98
+15.6%
7.4%US$151.00US$120.00US$138.5524

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


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