Yum! Brands, Inc. (YUM) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+51.6%

$238.11

vs $157.02 price

Levered DCF

$177.42

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

2.3

Grey zone

Rating

B-

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	27.06×	25.41×	23×	27.66×	26.2×	36.31×	23.81×	19.19×
P/B	-5.74×	-4.95×	-4.67×	-4.13×	-4.93×	-4.15×	-3.85×	-3.73×
P/S	5.12×	5.01×	5.19×	5.35×	6.26×	5.8×	5.51×	5.2×
EV / EBITDA	19.14×	19.31×	19.42×	20.95×	22.2×	25.57×	21.05×	16.22×
Gross margin	46.2%	47.5%	49.4%	48.3%	48.1%	47.5%	50.3%	46.7%
Operating margin	30.8%	31.8%	32.8%	32.0%	32.5%	26.6%	34.5%	40.4%
Net margin	19.0%	19.7%	22.6%	19.4%	23.9%	16.0%	23.1%	27.1%
Current ratio	1.35×	1.47×	1.26×	0.97×	1.08×	1.01×	0.99×	0.93×
Debt / equity	-1.63×	-1.61×	-1.53×	-1.43×	-1.45×	-1.48×	-1.41×	-1.27×
Interest coverage	5.06×	4.91×	4.52×	4.15×	3.93×	2.77×	3.97×	5.08×
Dividend yield	1.9%	2.0%	1.8%	1.8%	1.4%	1.7%	1.7%	1.6%
Payout ratio	50.6%	50.6%	42.5%	49.0%	37.6%	62.6%	39.5%	30.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	-21.3%	-19.4%	-20.3%	-14.9%	-18.8%	-11.5%	-16.1%	-19.5%
Return on invested capital	28.3%	33.7%	40.0%	37.4%	42.8%	28.2%	43.4%	61.1%
Return on assets	19.0%	22.1%	25.6%	22.7%	26.4%	15.4%	24.7%	37.3%
Free cash flow yield	3.9%	3.8%	3.6%	3.1%	3.6%	3.5%	3.6%	3.2%
Earnings yield	3.7%	3.9%	4.3%	3.6%	3.8%	2.8%	4.2%	5.2%
Enterprise value	$53.3B	$49.5B	$48.2B	$48.9B	$52.9B	$43.7B	$41.5B	$39.4B
Net debt / EBITDA	4.02×	4.55×	4.64×	5.27×	4.89×	6.39×	5.41×	4.03×
Cash conversion cycle (days)	-81	17	15	11	12	10	18	14