QuantSoar
UpdatedΒ·Data: Yahoo Finance, SEC EDGARΒ·Data delayed ~5 min
YU

Insight YUM 100% YoY Growth Lease Liability result Chip Play

NYQ Β· Consumer Cyclical Β· Restaurants

$146.33

+5.46 (+3.88%)

YUM Interactive Price Chart & Trading Signals

YUM Stock Snapshot β€” Valuation, Risk & Technical Signals

YUM Key Fundamentals, Analyst Targets & Company Profile

Key Financial Ratios

Market Cap

$39.93B

P/E Ratio

18.41

Forward P/E

20.85

PEG Ratio

1.78

P/B Ratio

-5.53

EPS

$7.95

Dividend Yield

2.05%

52W Range

$137.33 – $170.14

Beta

0.55

Volume

2.1M

ROE

β€”

Profit Margin

25.4%

Revenue Growth

12.2%

Gross Margin

45.3%

EV/EBITDA

17.17

Analyst Target

$173.79

The trailing price-to-earnings ratio stands at 18.4x. Forward P/E of 20.8x indicates stable forward expectations. EV/EBITDA sits at 17.17x. Market capitalization is $39.93B. Revenue is growing at 12.2% on a trailing basis. Earnings are expanding at 131.6%. Profit margins are 25.4%. Beta of 0.55 indicates defensive profile.

Analyst Consensus

Recommendation

Buy

Low Target

$147.00

Mean Target

$173.79

High Target

$200.00

Based on 22 analysts

About YUM

Yum! Brands, Inc., together with its subsidiaries, develops, operates, and franchises traditional and non-traditional quick service restaurants in the United States, China, and internationally. The company operates in four segments: KFC Division, Taco Bell Division, Pizza Hut Division, and Habit Burger & Grill Division. It also operates restaurants under the KFC, Pizza Hut, Taco Bell, and Habit Burger & Grill brands, which specialize in chicken, Mexican-style food and pizza categories, made-to-order chargrilled burgers, sandwiches, and other products. The company was formerly known as TRICON Global Restaurants, Inc. and changed its name to Yum! Brands, Inc. in May 2002. Yum! Brands, Inc. was incorporated in 1997 and is headquartered in Louisville, Kentucky.

United States49,000 employeesWebsite β†—

YUM Deep Dive Analysis

Bottom Line

Verdict

Overvalued

Best for

General investor

Watch out for

Premium valuation

Data confidence

High

Yum! Brands, Inc. (YUM) trades above our multi-model fair value estimate of $68.87 by approximately 52.9%. Trailing P/E: 18.4x. Profitability signals include profit margin of 25.4%. Recent growth metrics show revenue growth of 12.2% and earnings growth of 131.6%. Risk profile: defensive beta of 0.55. Consensus: buy.

YUM Deep Dive Analysis

Valuation

Overvalued

P/E 18.4x

Price is above what fundamentals suggest.

Growth

Expanding

Rev 12.2%

Revenue is outpacing the market.

Risk

Low

Beta 0.55

Movement is likely to track the broader market.

Valuation Snapshot

Yum! Brands, Inc. (YUM) trades above our multi-model fair value estimate of $68.87 by approximately 52.9%. The trailing price-to-earnings ratio stands at 18.4x. Forward P/E of 20.8x implies earnings expansion expected. Price-to-sales is 4.6x. EV/EBITDA sits at 17.2x. Market capitalization is $39.93B.

Why it matters: Paying a premium works only if the company keeps growing faster than expected.

Growth & Profitability

Revenue is growing at 12.2% on a trailing basis. Earnings are expanding at 131.6%. Profit margins are 25.4%. Return on assets is 22.7%.

Why it matters: Growing revenue with healthy margins usually means the business is gaining market share or pricing power.

Risk Profile

Beta of 0.55 indicates defensive profile. Net debt position is $12.73B.

Why it matters: Lower risk means steadier returns, but often with less upside in bull markets.

Analyst Context

Analyst consensus target of $173.79 implies 18.8% upside. Target range spans $147.00 to $200.00. 22 analysts cover the stock. Consensus recommendation: buy.

Why it matters: Analyst targets reflect what professionals expect over 12 months. A wide gap between price and target can mean the market disagrees with the consensus.

Data Methodology & Sources

Market Data (Facts)

  • Price, volume, market cap: Yahoo Finance (delayed ~5 min)
  • P/E, EPS, revenue, debt: Yahoo Finance fundamentals
  • Analyst targets: Yahoo Finance consensus (may lag)
  • Insider trades: SEC EDGAR Form 4 filings

QuantSoar Model (Derived)

  • Fair Value: 7-model consensus (DCF, Graham, P/E, P/S, DDM, EV/EBITDA, Div Yield) β€” trimmed inverse-variance weighted
  • Margin of Safety = (Fair Value βˆ’ Live Price) / Live Price Γ— 100
  • Composite Score: 40% Value + 30% Momentum + 30% Risk
  • Verdict Gauge: Base 50 + Valuation(Β±25) + Whale(Β±10) + Macro(Β±10) + Technical(Β±10). Analyst consensus shown separately.

Model outputs are estimates based on available data and are not investment advice. Cross-check with primary sources before making investment decisions.

YUM Overvalued

Yum! Brands, Inc. (YUM) trades above our multi-model fair value estimate of $68.87 by approximately 52.9%.

Frequently Asked Questions

ValuationIs YUM stock overvalued right now?
Based on our discounted cash flow and relative valuation models, YUM appears to trade above fair value by approximately 52.9%. This suggests the market may be pricing in elevated growth expectations or sentiment premiums.
ValuationWhat is YUM fair value based on current fundamentals?
Our fair value estimate for YUM is $68.87, derived from discounted cash flow, dividend discount, and relative valuation multiples. The estimate assumes a discount rate of 9.0% and terminal growth of 2.5%.
RiskHow risky is YUM compared with other stocks?
YUM carries a beta of 0.55 suggests a defensive profile. Investors should weigh macro exposure against their own risk tolerance.
GrowthIs YUM still growing?
Latest trailing metrics show revenue growth of 12.2% and earnings growth of 131.6%. Profit margins are 25.4%.
AnalystWhat do analysts think about YUM?
Analyst consensus target is $173.79, implying 18.8% upside. The street recommendation is "buy".
DividendDoes YUM pay a dividend?
Yes. YUM currently offers a dividend yield of 2.0%.
CatalystWhat could change the investment case for YUM?
Key catalysts include Consumer Cyclical sector dynamics, interest rate shifts, and company-specific earnings surprises. Monitor macro risk scores and analyst estimate revisions for early signals.

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About the Author

Phasakorn Traklang (Peach) β€” Founder

Phasakorn Traklang (Peach) is the founder of QuantSoar, bringing expertise in SEO, web development, and technical analytics to build an AI-powered investment platform accessible to retail investors worldwide.

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Investment Disclaimer: QuantSoar is for informational purposes only. We do not provide personalized investment advice. Always conduct your own research or consult a financial advisor. SEC

Data: Yahoo Finance / SEC EDGAR / Alpha Vantage / Finnhub. AI outputs verified against source data.