YUM Relative Valuation
YUM's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, YUM is overvalued; if below, it's undervalued.
Historical Valuation
Yum! Brands Inc (YUM) is now in the Undervalued zone, suggesting that its current forward PE ratio of 22.71 is considered Undervalued compared with the five-year average of 24.59. The fair price of Yum! Brands Inc (YUM) is between 147.32 to 167.42 according to relative valuation methord. Compared to the current price of 145.86 USD , Yum! Brands Inc is Undervalued By 0.99%.
Relative Value
Fair Zone
147.32-167.42
Current Price：145.86
0.99%
Undervalued
22.71
PE
1Y
3Y
5Y
Trailing
Forward
17.27
EV/EBITDA
Yum! Brands Inc. (YUM) has a current EV/EBITDA of 17.27. The 5-year average EV/EBITDA is 18.61. The thresholds are as follows: Strongly Undervalued below 16.35, Undervalued between 16.35 and 17.48, Fairly Valued between 19.74 and 17.48, Overvalued between 19.74 and 20.88, and Strongly Overvalued above 20.88. The current Forward EV/EBITDA of 17.27 falls within the Undervalued range.
18.57
EV/EBIT
Yum! Brands Inc. (YUM) has a current EV/EBIT of 18.57. The 5-year average EV/EBIT is 19.91. The thresholds are as follows: Strongly Undervalued below 17.47, Undervalued between 17.47 and 18.69, Fairly Valued between 21.12 and 18.69, Overvalued between 21.12 and 22.34, and Strongly Overvalued above 22.34. The current Forward EV/EBIT of 18.57 falls within the Undervalued range.
4.74
PS
Yum! Brands Inc. (YUM) has a current PS of 4.74. The 5-year average PS is 5.00. The thresholds are as follows: Strongly Undervalued below 4.34, Undervalued between 4.34 and 4.67, Fairly Valued between 5.32 and 4.67, Overvalued between 5.32 and 5.65, and Strongly Overvalued above 5.65. The current Forward PS of 4.74 falls within the Historic Trend Line -Fairly Valued range.
20.54
P/OCF
Yum! Brands Inc. (YUM) has a current P/OCF of 20.54. The 5-year average P/OCF is 21.53. The thresholds are as follows: Strongly Undervalued below 18.18, Undervalued between 18.18 and 19.85, Fairly Valued between 23.21 and 19.85, Overvalued between 23.21 and 24.88, and Strongly Overvalued above 24.88. The current Forward P/OCF of 20.54 falls within the Historic Trend Line -Fairly Valued range.
22.82
P/FCF
Yum! Brands Inc. (YUM) has a current P/FCF of 22.82. The 5-year average P/FCF is 24.61. The thresholds are as follows: Strongly Undervalued below 20.50, Undervalued between 20.50 and 22.56, Fairly Valued between 26.67 and 22.56, Overvalued between 26.67 and 28.72, and Strongly Overvalued above 28.72. The current Forward P/FCF of 22.82 falls within the Historic Trend Line -Fairly Valued range.
Yum! Brands Inc (YUM) has a current Price-to-Book (P/B) ratio of -5.40. Compared to its 3-year average P/B ratio of -4.78 , the current P/B ratio is approximately 13.01% higher. Relative to its 5-year average P/B ratio of -4.57, the current P/B ratio is about 18.28% higher. Yum! Brands Inc (YUM) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.52%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.65% , the current FCF yield is about -100.00% lower.
-5.40
P/B
Median3y
-4.78
Median5y
-4.57
3.79
FCF Yield
Median3y
3.52
Median5y
3.65
Competitors Valuation Multiple
The average P/S ratio for YUM's competitors is , providing a benchmark for relative valuation. Yum! Brands Inc Corp (YUM) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 8.38%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of YUM increased by 8.72% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 1.83B to 1.98B.
The secondary factor is the P/E Change, contributed 4.45%to the performance.
Overall, the performance of YUM in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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