Stock Analysis on Net

YUM! Brands Inc. (NYSE:YUM)

This company has been moved to the archive! The financial data has not been updated since October 11, 2016.

Common Stock Valuation Ratios (Price Multiples) 

Microsoft Excel

Current Valuation Ratios

YUM! Brands Inc., current price multiples

Microsoft Excel
YUM! Brands Inc. Airbnb Inc. Booking Holdings Inc. Carnival Corp. & plc Chipotle Mexican Grill Inc. McDonald’s Corp. Starbucks Corp.
Selected Financial Data
Current share price (P) $88.25
No. shares of common stock outstanding 367,005,511
Growth rate (g) 33.28%
 
Earnings per share (EPS) $3.52
Next year expected EPS $4.70
Operating profit per share $5.23
Sales per share $35.71
Book value per share (BVPS) $2.48
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 25.05 22.47 29.27 65.24 24.05 25.12
Price to next year expected earnings 18.79 29.25 19.25 50.65 11.61
Price-earnings-growth (PEG) 0.75 0.56 2.26 0.22
Price to operating profit (P/OP) 16.86 70.93 21.51 11.51 51.46 17.48 17.65
Price to sales (P/S) 2.47 10.86 5.88 1.04 8.12 7.99 2.88
Price to book value (P/BV) 35.55 13.19 3.27 26.18

Based on: 10-K (reporting date: 2015-12-26).

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

YUM! Brands Inc., historical price multiples

Microsoft Excel
Dec 26, 2015 Dec 27, 2014 Dec 28, 2013 Dec 29, 2012 Dec 31, 2011
Price to earnings (P/E) 21.97 31.34 29.73 18.22 22.86
Price to operating profit (P/OP) 14.79 21.16 18.04 12.68 16.62
Price to sales (P/S) 2.17 2.48 2.48 2.13 2.39
Price to book value (P/BV) 31.19 21.29 14.98 13.51 16.54

Based on: 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. YUM! Brands Inc. P/E ratio increased from 2013 to 2014 but then decreased significantly from 2014 to 2015.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. YUM! Brands Inc. P/OP ratio increased from 2013 to 2014 but then decreased significantly from 2014 to 2015.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. YUM! Brands Inc. P/S ratio increased from 2013 to 2014 but then decreased significantly from 2014 to 2015.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. YUM! Brands Inc. P/BV ratio increased from 2013 to 2014 and from 2014 to 2015.

Price to Earnings (P/E)

YUM! Brands Inc., historical P/E calculation, comparison to benchmarks

Microsoft Excel
Dec 26, 2015 Dec 27, 2014 Dec 28, 2013 Dec 29, 2012 Dec 31, 2011
No. shares of common stock outstanding1 408,711,522 433,115,252 442,931,286 450,729,244 460,414,239
Selected Financial Data (US$)
Net income, YUM! Brands, Inc. (in millions) 1,293 1,051 1,091 1,597 1,319
Earnings per share (EPS)2 3.16 2.43 2.46 3.54 2.86
Share price1, 3 69.52 76.05 73.24 64.56 65.50
Valuation Ratio
P/E ratio4 21.97 31.34 29.73 18.22 22.86
Benchmarks
P/E Ratio, Competitors5
Airbnb Inc.
Booking Holdings Inc.
Carnival Corp. & plc
Chipotle Mexican Grill Inc.
McDonald’s Corp.
Starbucks Corp.

Based on: 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31).

1 Data adjusted for splits and stock dividends.

2 2015 Calculation
EPS = Net income, YUM! Brands, Inc. ÷ No. shares of common stock outstanding
= 1,293,000,000 ÷ 408,711,522 = 3.16

3 Closing price as at the filing date of YUM! Brands Inc. Annual Report.

4 2015 Calculation
P/E ratio = Share price ÷ EPS
= 69.52 ÷ 3.16 = 21.97

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. YUM! Brands Inc. P/E ratio increased from 2013 to 2014 but then decreased significantly from 2014 to 2015.

Price to Operating Profit (P/OP)

YUM! Brands Inc., historical P/OP calculation, comparison to benchmarks

Microsoft Excel
Dec 26, 2015 Dec 27, 2014 Dec 28, 2013 Dec 29, 2012 Dec 31, 2011
No. shares of common stock outstanding1 408,711,522 433,115,252 442,931,286 450,729,244 460,414,239
Selected Financial Data (US$)
Operating profit (in millions) 1,921 1,557 1,798 2,294 1,815
Operating profit per share2 4.70 3.59 4.06 5.09 3.94
Share price1, 3 69.52 76.05 73.24 64.56 65.50
Valuation Ratio
P/OP ratio4 14.79 21.16 18.04 12.68 16.62
Benchmarks
P/OP Ratio, Competitors5
Airbnb Inc.
Booking Holdings Inc.
Carnival Corp. & plc
Chipotle Mexican Grill Inc.
McDonald’s Corp.
Starbucks Corp.

Based on: 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31).

1 Data adjusted for splits and stock dividends.

2 2015 Calculation
Operating profit per share = Operating profit ÷ No. shares of common stock outstanding
= 1,921,000,000 ÷ 408,711,522 = 4.70

3 Closing price as at the filing date of YUM! Brands Inc. Annual Report.

4 2015 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 69.52 ÷ 4.70 = 14.79

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. YUM! Brands Inc. P/OP ratio increased from 2013 to 2014 but then decreased significantly from 2014 to 2015.

Price to Sales (P/S)

YUM! Brands Inc., historical P/S calculation, comparison to benchmarks

Microsoft Excel
Dec 26, 2015 Dec 27, 2014 Dec 28, 2013 Dec 29, 2012 Dec 31, 2011
No. shares of common stock outstanding1 408,711,522 433,115,252 442,931,286 450,729,244 460,414,239
Selected Financial Data (US$)
Revenues (in millions) 13,105 13,279 13,084 13,633 12,626
Sales per share2 32.06 30.66 29.54 30.25 27.42
Share price1, 3 69.52 76.05 73.24 64.56 65.50
Valuation Ratio
P/S ratio4 2.17 2.48 2.48 2.13 2.39
Benchmarks
P/S Ratio, Competitors5
Airbnb Inc.
Booking Holdings Inc.
Carnival Corp. & plc
Chipotle Mexican Grill Inc.
McDonald’s Corp.
Starbucks Corp.

Based on: 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31).

1 Data adjusted for splits and stock dividends.

2 2015 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= 13,105,000,000 ÷ 408,711,522 = 32.06

3 Closing price as at the filing date of YUM! Brands Inc. Annual Report.

4 2015 Calculation
P/S ratio = Share price ÷ Sales per share
= 69.52 ÷ 32.06 = 2.17

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. YUM! Brands Inc. P/S ratio increased from 2013 to 2014 but then decreased significantly from 2014 to 2015.

Price to Book Value (P/BV)

YUM! Brands Inc., historical P/BV calculation, comparison to benchmarks

Microsoft Excel
Dec 26, 2015 Dec 27, 2014 Dec 28, 2013 Dec 29, 2012 Dec 31, 2011
No. shares of common stock outstanding1 408,711,522 433,115,252 442,931,286 450,729,244 460,414,239
Selected Financial Data (US$)
Shareholders’ equity, YUM! Brands, Inc. (in millions) 911 1,547 2,166 2,154 1,823
Book value per share (BVPS)2 2.23 3.57 4.89 4.78 3.96
Share price1, 3 69.52 76.05 73.24 64.56 65.50
Valuation Ratio
P/BV ratio4 31.19 21.29 14.98 13.51 16.54
Benchmarks
P/BV Ratio, Competitors5
Airbnb Inc.
Booking Holdings Inc.
Carnival Corp. & plc
Chipotle Mexican Grill Inc.
McDonald’s Corp.
Starbucks Corp.

Based on: 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31).

1 Data adjusted for splits and stock dividends.

2 2015 Calculation
BVPS = Shareholders’ equity, YUM! Brands, Inc. ÷ No. shares of common stock outstanding
= 911,000,000 ÷ 408,711,522 = 2.23

3 Closing price as at the filing date of YUM! Brands Inc. Annual Report.

4 2015 Calculation
P/BV ratio = Share price ÷ BVPS
= 69.52 ÷ 2.23 = 31.19

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. YUM! Brands Inc. P/BV ratio increased from 2013 to 2014 and from 2014 to 2015.