YUMC Valuation

Yum China Holdings Inc

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43.260

-0.44(-1.007%)1D

YUMC Relative Valuation

YUMC'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, YUMC is overvalued; if below, it's undervalued.

Historical Valuation

Yum China Holdings Inc (YUMC) is now in the Undervalued zone, suggesting that its current forward PE ratio of 15.97 is considered Undervalued compared with the five-year average of 26.84. The fair price of Yum China Holdings Inc (YUMC) is between 55.35 to 95.51 according to relative valuation methord. Compared to the current price of 43.26 USD , Yum China Holdings Inc is Undervalued By 21.85%.

Relative Value

Fair Zone

55.35-95.51

Current Price：43.26

21.85%

Undervalued

15.97

Trailing

Forward

8.57

EV/EBITDA

Yum China Holdings Inc. (YUMC) has a current EV/EBITDA of 8.57. The 5-year average EV/EBITDA is 12.09. The thresholds are as follows: Strongly Undervalued below 6.33, Undervalued between 6.33 and 9.21, Fairly Valued between 14.98 and 9.21, Overvalued between 14.98 and 17.86, and Strongly Overvalued above 17.86. The current Forward EV/EBITDA of 8.57 falls within the Undervalued range.

12.02

EV/EBIT

Yum China Holdings Inc. (YUMC) has a current EV/EBIT of 12.02. The 5-year average EV/EBIT is 18.98. The thresholds are as follows: Strongly Undervalued below 7.69, Undervalued between 7.69 and 13.33, Fairly Valued between 24.62 and 13.33, Overvalued between 24.62 and 30.27, and Strongly Overvalued above 30.27. The current Forward EV/EBIT of 12.02 falls within the Undervalued range.

43.26

Yum China Holdings Inc. (YUMC) has a current PS of 43.26. The 5-year average PS is 1.95. The thresholds are as follows: Strongly Undervalued below -2.29, Undervalued between -2.29 and -0.17, Fairly Valued between 4.08 and -0.17, Overvalued between 4.08 and 6.20, and Strongly Overvalued above 6.20. The current Forward PS of 43.26 falls within the Strongly Overvalued range.

9.55

P/OCF

Yum China Holdings Inc. (YUMC) has a current P/OCF of 9.55. The 5-year average P/OCF is 13.24. The thresholds are as follows: Strongly Undervalued below 6.43, Undervalued between 6.43 and 9.83, Fairly Valued between 16.65 and 9.83, Overvalued between 16.65 and 20.06, and Strongly Overvalued above 20.06. The current Forward P/OCF of 9.55 falls within the Undervalued range.

15.30

P/FCF

Yum China Holdings Inc. (YUMC) has a current P/FCF of 15.30. The 5-year average P/FCF is 26.02. The thresholds are as follows: Strongly Undervalued below 9.95, Undervalued between 9.95 and 17.99, Fairly Valued between 34.06 and 17.99, Overvalued between 34.06 and 42.09, and Strongly Overvalued above 42.09. The current Forward P/FCF of 15.30 falls within the Undervalued range.

Yum China Holdings Inc (YUMC) has a current Price-to-Book (P/B) ratio of 2.79. Compared to its 3-year average P/B ratio of 3.05 , the current P/B ratio is approximately -8.70% higher. Relative to its 5-year average P/B ratio of 3.23, the current P/B ratio is about -13.61% higher. Yum China Holdings Inc (YUMC) has a Forward Free Cash Flow (FCF) yield of approximately 5.34%. Compared to its 3-year average FCF yield of 4.29%, the current FCF yield is approximately 24.59% lower. Relative to its 5-year average FCF yield of 3.58% , the current FCF yield is about 49.40% lower.

2.79

P/B

Median3y

3.05

Median5y

3.23

5.34

FCF Yield

Median3y

4.29

Median5y

3.58

Competitors Valuation Multiple

The average P/S ratio for YUMC's competitors is 146.48, providing a benchmark for relative valuation. Yum China Holdings Inc Corp (YUMC) exhibits a P/S ratio of 43.26, which is -70.47% above the industry average. Given its robust revenue growth of 4.03%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

YUMC.N

Yum China Holdings Inc

Darden Restaurants Inc

Performance Decomposition

Market capitalization of YUMC decreased by 7.07% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 2.68B to 2.79B.

The secondary factor is the Margin Expansion, contributed -1.76%to the performance.

Overall, the performance of YUMC in the past 1 year is driven by Revenue Growth. Which is more sustainable.

4.03%

2.68B → 2.79B

Revenue Growth

-1.76%

8.51 → 8.36

Margin Expansion

-9.34%

19.77 → 17.92

P/E Change

-7.07%