Price to Sales (P/S)
since 2005
Calculation
YUM! Brands Inc., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Revenues1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 16, 2016 | 2.17 | = | 69.52 | ÷ | 32.06 | 32.06 | = | 13,105 | ÷ | 408,711,522 | |
| Feb 17, 2015 | 2.48 | = | 76.05 | ÷ | 30.66 | 30.66 | = | 13,279 | ÷ | 433,115,252 | |
| Feb 18, 2014 | 2.48 | = | 73.24 | ÷ | 29.54 | 29.54 | = | 13,084 | ÷ | 442,931,286 | |
| Feb 20, 2013 | 2.13 | = | 64.56 | ÷ | 30.25 | 30.25 | = | 13,633 | ÷ | 450,729,244 | |
| Feb 21, 2012 | 2.39 | = | 65.50 | ÷ | 27.42 | 27.42 | = | 12,626 | ÷ | 460,414,239 | |
| Feb 15, 2011 | 2.09 | = | 50.73 | ÷ | 24.27 | 24.27 | = | 11,343 | ÷ | 467,446,794 | |
| Feb 17, 2010 | 1.46 | = | 33.66 | ÷ | 23.09 | 23.09 | = | 10,836 | ÷ | 469,275,605 | |
| Feb 23, 2009 | 1.12 | = | 27.45 | ÷ | 24.52 | 24.52 | = | 11,279 | ÷ | 459,931,675 | |
| Feb 25, 2008 | 1.66 | = | 36.33 | ÷ | 21.91 | 21.91 | = | 10,416 | ÷ | 475,493,520 | |
| Feb 28, 2007 | 1.60 | = | 28.97 | ÷ | 18.13 | 18.13 | = | 9,561 | ÷ | 527,251,252 | |
| Mar 3, 2006 | 1.43 | = | 24.30 | ÷ | 16.95 | 16.95 | = | 9,349 | ÷ | 551,661,712 |
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), 10-K (reporting date: 2010-12-25), 10-K (reporting date: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of YUM! Brands Inc. Annual Report.
The analysis of the Price-to-Sales (P/S) ratio from 2006 to 2016 reveals a general expansion in market valuation relative to revenue generation, characterized by a period of volatility followed by a sustained increase and a final correction.
- Revenue and Share Price Correlation
- A consistent upward trajectory is observed in sales per share, which grew from 16.95 US$ in 2006 to 32.06 US$ in 2016. While the share price generally mirrored this growth—rising from 24.30 US$ to a peak of 76.05 US$ in 2015—the growth in valuation often outpaced the growth in revenue, as evidenced by the rising P/S ratio.
- Valuation Cycle and P/S Fluctuations
- The P/S ratio exhibited a notable dip in 2009, falling to 1.12. This represents the lowest valuation multiple in the series, occurring despite a year-over-year increase in sales per share, suggesting that external market pressures suppressed the share price relative to fundamental revenue performance. Following this trough, the ratio climbed steadily, reaching a plateau of 2.48 in 2014 and 2015, indicating a significant increase in the premium the market was willing to pay for each dollar of sales.
- Recent Valuation Correction
- A downward adjustment in the valuation multiple is observed in 2016, with the P/S ratio declining to 2.17. This contraction occurred even as sales per share reached their period maximum of 32.06 US$, reflecting a reduction in the share price to 69.52 US$ and a subsequent normalization of the valuation multiple.
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Comparison to Competitors
YUM! Brands Inc., P/S, long-term trends, comparison to competitors
| YUM! Brands Inc. | Airbnb Inc. | Booking Holdings Inc. | Chipotle Mexican Grill Inc. | DoorDash, Inc. | McDonald’s Corp. | Starbucks Corp. | |
|---|---|---|---|---|---|---|---|
| Feb 16, 2016 | 2.17 | — | 6.65 | 3.07 | — | 4.20 | 4.73 |
| Feb 17, 2015 | 2.48 | — | 7.49 | 5.10 | — | 3.33 | 3.55 |
| Feb 18, 2014 | 2.48 | — | 9.85 | 5.24 | — | 3.40 | 4.08 |
| Feb 20, 2013 | 2.13 | — | 6.60 | 3.64 | — | 3.50 | 2.73 |
| Feb 21, 2012 | 2.39 | — | 6.76 | 5.19 | — | 3.78 | 2.68 |
| Feb 15, 2011 | 2.09 | — | 7.33 | 4.49 | — | 3.23 | 2.14 |
| Feb 17, 2010 | 1.46 | — | 4.49 | 2.18 | — | 3.02 | 1.62 |
| Feb 23, 2009 | 1.12 | — | 1.82 | 1.29 | — | 2.57 | 0.60 |
| Feb 25, 2008 | 1.66 | — | 3.11 | 3.17 | — | 2.83 | 1.79 |
| Feb 28, 2007 | 1.60 | — | 1.78 | 2.56 | — | 2.55 | 3.55 |
| Mar 3, 2006 | 1.43 | — | 0.97 | 2.80 | — | 2.17 | 3.74 |
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), 10-K (reporting date: 2010-12-25), 10-K (reporting date: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Consumer Services)
YUM! Brands Inc., P/S, long-term trends, comparison to sector (consumer services)
| YUM! Brands Inc. | Consumer Services | |
|---|---|---|
| Feb 16, 2016 | 2.17 | 4.67 |
| Feb 17, 2015 | 2.48 | 4.15 |
| Feb 18, 2014 | 2.48 | 4.53 |
| Feb 20, 2013 | 2.13 | 3.63 |
| Feb 21, 2012 | 2.39 | 3.85 |
| Feb 15, 2011 | 2.09 | 3.31 |
| Feb 17, 2010 | 1.46 | 2.70 |
| Feb 23, 2009 | 1.12 | 1.93 |
| Feb 25, 2008 | 1.66 | 2.57 |
| Feb 28, 2007 | 1.60 | 2.77 |
| Mar 3, 2006 | 1.43 | 2.49 |
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), 10-K (reporting date: 2010-12-25), 10-K (reporting date: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Consumer Discretionary)
YUM! Brands Inc., P/S, long-term trends, comparison to industry (consumer discretionary)
| YUM! Brands Inc. | Consumer Discretionary | |
|---|---|---|
| Feb 16, 2016 | 2.17 | 1.57 |
| Feb 17, 2015 | 2.48 | 1.32 |
| Feb 18, 2014 | 2.48 | 1.33 |
| Feb 20, 2013 | 2.13 | 1.06 |
| Feb 21, 2012 | 2.39 | 0.97 |
| Feb 15, 2011 | 2.09 | 0.96 |
| Feb 17, 2010 | 1.46 | 0.92 |
| Feb 23, 2009 | 1.12 | 0.66 |
| Feb 25, 2008 | 1.66 | 0.79 |
| Feb 28, 2007 | 1.60 | 0.86 |
| Mar 3, 2006 | 1.43 | 0.79 |
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), 10-K (reporting date: 2010-12-25), 10-K (reporting date: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30), 10-K (reporting date: 2005-12-31).