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 Fair zone, suggesting that its current forward PE ratio of 23.16 is considered Fairly compared with the five-year average of 24.67. The fair price of Yum! Brands Inc (YUM) is between 146.62 to 166.85 according to relative valuation methord.
Relative Value
Fair Zone
146.62-166.85
Current Price：149.12
Fair
23.16
PE
1Y
3Y
5Y
Trailing
Forward
17.11
EV/EBITDA
Yum! Brands Inc. (YUM) has a current EV/EBITDA of 17.11. The 5-year average EV/EBITDA is 18.68. The thresholds are as follows: Strongly Undervalued below 16.44, Undervalued between 16.44 and 17.56, Fairly Valued between 19.80 and 17.56, Overvalued between 19.80 and 20.92, and Strongly Overvalued above 20.92. The current Forward EV/EBITDA of 17.11 falls within the Undervalued range.
18.32
EV/EBIT
Yum! Brands Inc. (YUM) has a current EV/EBIT of 18.32. The 5-year average EV/EBIT is 19.97. The thresholds are as follows: Strongly Undervalued below 17.56, Undervalued between 17.56 and 18.77, Fairly Valued between 21.18 and 18.77, Overvalued between 21.18 and 22.39, and Strongly Overvalued above 22.39. The current Forward EV/EBIT of 18.32 falls within the Undervalued range.
149.12
PS
Yum! Brands Inc. (YUM) has a current PS of 149.12. The 5-year average PS is 5.80. The thresholds are as follows: Strongly Undervalued below -15.23, Undervalued between -15.23 and -4.72, Fairly Valued between 16.32 and -4.72, Overvalued between 16.32 and 26.84, and Strongly Overvalued above 26.84. The current Forward PS of 149.12 falls within the Strongly Overvalued range.
20.85
P/OCF
Yum! Brands Inc. (YUM) has a current P/OCF of 20.85. The 5-year average P/OCF is 21.59. The thresholds are as follows: Strongly Undervalued below 18.23, Undervalued between 18.23 and 19.91, Fairly Valued between 23.27 and 19.91, Overvalued between 23.27 and 24.95, and Strongly Overvalued above 24.95. The current Forward P/OCF of 20.85 falls within the Historic Trend Line -Fairly Valued range.
24.17
P/FCF
Yum! Brands Inc. (YUM) has a current P/FCF of 24.17. The 5-year average P/FCF is 24.69. The thresholds are as follows: Strongly Undervalued below 20.62, Undervalued between 20.62 and 22.65, Fairly Valued between 26.73 and 22.65, Overvalued between 26.73 and 28.76, and Strongly Overvalued above 28.76. The current Forward P/FCF of 24.17 falls within the Historic Trend Line -Fairly Valued range.
Yum! Brands Inc (YUM) has a current Price-to-Book (P/B) ratio of -5.52. Compared to its 3-year average P/B ratio of -4.75 , the current P/B ratio is approximately 16.35% higher. Relative to its 5-year average P/B ratio of -4.54, the current P/B ratio is about 21.55% higher. Yum! Brands Inc (YUM) has a Forward Free Cash Flow (FCF) yield of approximately 3.78%. Compared to its 3-year average FCF yield of 3.51%, the current FCF yield is approximately 7.78% lower. Relative to its 5-year average FCF yield of 3.65% , the current FCF yield is about 3.66% lower.
-5.52
P/B
Median3y
-4.75
Median5y
-4.54
3.78
FCF Yield
Median3y
3.51
Median5y
3.65
Competitors Valuation Multiple
The average P/S ratio for YUM's competitors is 146.55, providing a benchmark for relative valuation. Yum! Brands Inc Corp (YUM) exhibits a P/S ratio of 149.12, which is 1.76% above the industry average. Given its robust revenue growth of -61.83%, 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 7.33% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 20.92 to 77.62.
The secondary factor is the Revenue Growth, contributed -61.83%to the performance.
Overall, the performance of YUM in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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