YUMC PE Ratio & Valuation,Is YUMC Overvalued

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 17.32 is considered Undervalued compared with the five-year average of 26.49. The fair price of Yum China Holdings Inc (YUMC) is between 56.64 to 98.53 according to relative valuation methord. Compared to the current price of 48.25 USD , Yum China Holdings Inc is Undervalued By 14.81%.

Relative Value

Fair Zone

56.64-98.53

Current Price：48.25

14.81%

Undervalued

17.32

9.32

EV/EBITDA

Yum China Holdings Inc. (YUMC) has a current EV/EBITDA of 9.32. The 5-year average EV/EBITDA is 11.90. The thresholds are as follows: Strongly Undervalued below 6.15, Undervalued between 6.15 and 9.03, Fairly Valued between 14.78 and 9.03, Overvalued between 14.78 and 17.66, and Strongly Overvalued above 17.66. The current Forward EV/EBITDA of 9.32 falls within the Historic Trend Line -Fairly Valued range.

12.79

EV/EBIT

Yum China Holdings Inc. (YUMC) has a current EV/EBIT of 12.79. The 5-year average EV/EBIT is 18.68. The thresholds are as follows: Strongly Undervalued below 7.21, Undervalued between 7.21 and 12.94, Fairly Valued between 24.41 and 12.94, Overvalued between 24.41 and 30.15, and Strongly Overvalued above 30.15. The current Forward EV/EBIT of 12.79 falls within the Undervalued range.

1.41

Yum China Holdings Inc. (YUMC) has a current PS of 1.41. The 5-year average PS is 1.82. The thresholds are as follows: Strongly Undervalued below 0.90, Undervalued between 0.90 and 1.36, Fairly Valued between 2.28 and 1.36, Overvalued between 2.28 and 2.73, and Strongly Overvalued above 2.73. The current Forward PS of 1.41 falls within the Historic Trend Line -Fairly Valued range.

10.49

P/OCF

Yum China Holdings Inc. (YUMC) has a current P/OCF of 10.49. The 5-year average P/OCF is 13.01. The thresholds are as follows: Strongly Undervalued below 6.31, Undervalued between 6.31 and 9.66, Fairly Valued between 16.35 and 9.66, Overvalued between 16.35 and 19.70, and Strongly Overvalued above 19.70. The current Forward P/OCF of 10.49 falls within the Historic Trend Line -Fairly Valued range.

18.86

P/FCF

Yum China Holdings Inc. (YUMC) has a current P/FCF of 18.86. The 5-year average P/FCF is 25.58. The thresholds are as follows: Strongly Undervalued below 9.46, Undervalued between 9.46 and 17.52, Fairly Valued between 33.64 and 17.52, Overvalued between 33.64 and 41.71, and Strongly Overvalued above 41.71. The current Forward P/FCF of 18.86 falls within the Historic Trend Line -Fairly Valued range.

Yum China Holdings Inc (YUMC) has a current Price-to-Book (P/B) ratio of 3.14. Compared to its 3-year average P/B ratio of 3.03 , the current P/B ratio is approximately 3.37% higher. Relative to its 5-year average P/B ratio of 3.20, the current P/B ratio is about -2.05% higher. Yum China Holdings Inc (YUMC) has a Forward Free Cash Flow (FCF) yield of approximately 5.46%. Compared to its 3-year average FCF yield of 4.43%, the current FCF yield is approximately 23.36% lower. Relative to its 5-year average FCF yield of 3.67% , the current FCF yield is about 48.85% lower.

3.14

P/B

Median3y

3.03

Median5y

3.20

5.46

FCF Yield

Median3y

4.43

Median5y

3.67

Competitors Valuation Multiple

The average P/S ratio for YUMC's competitors is 2.02, providing a benchmark for relative valuation. Yum China Holdings Inc Corp (YUMC) exhibits a P/S ratio of 1.41, which is -30.51% above the industry average. Given its robust revenue growth of 4.40%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of YUMC increased by 0.77% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 19.32 to 20.25.

The secondary factor is the Revenue Growth, contributed 4.40%to the performance.

Overall, the performance of YUMC in the past 1 year is driven by P/E Change. Which is more unsustainable.

4.40%

3.07B → 3.21B

Revenue Growth

-8.47%

10.39 → 9.51

Margin Expansion

4.84%

19.32 → 20.25

P/E Change

0.77%

48.17 → 48.54

Mkt Cap Growth

People Also Watch

Frequently Asked Questions

Is Yum China Holdings Inc (YUMC) currently overvalued or undervalued?

What is Yum China Holdings Inc (YUMC) fair value?

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. The fair price of Yum China Holdings Inc (YUMC) is between 56.64 to 98.53 according to relative valuation methord.

How does YUMC's valuation metrics compare to the industry average?

What is the current P/B ratio for Yum China Holdings Inc (YUMC) as of Dec 15 2025?

As of Dec 15 2025, Yum China Holdings Inc (YUMC) has a P/B ratio of 3.14. This indicates that the market values YUMC at 3.14 times its book value.

What is the current FCF Yield for Yum China Holdings Inc (YUMC) as of Dec 15 2025?

As of Dec 15 2025, Yum China Holdings Inc (YUMC) has a FCF Yield of 5.46%. This means that for every dollar of Yum China Holdings Inc’s market capitalization, the company generates 5.46 cents in free cash flow.

What is the current Forward P/E ratio for Yum China Holdings Inc (YUMC) as of Dec 15 2025?

As of Dec 15 2025, Yum China Holdings Inc (YUMC) has a Forward P/E ratio of 17.32. This means the market is willing to pay $17.32 for every dollar of Yum China Holdings Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Yum China Holdings Inc (YUMC) as of Dec 15 2025?

As of Dec 15 2025, Yum China Holdings Inc (YUMC) has a Forward P/S ratio of 1.41. This means the market is valuing YUMC at $1.41 for every dollar of expected revenue over the next 12 months.

YUMC Valuation