On July 15, 2026, Yum Brands Inc YUM shares fell 3.5% to a current price of $152.57. This movement comes in the context of a 52-week range between $137.33 and $170.14, highlighting recent volatility in the stock. The company has seen a year-to-date increase of 1.8% and a 7.2% rise over the past year.
- GF Value™ verdict: Currently priced at $152.57, Yum Brands is estimated to be undervalued by 9.2% compared to its GF Value™ of $168.03.
- GF Score™ of 88/100 indicates a strong overall company performance relative to peers.
- Most notable signal: Insiders have sold $2.9M worth of shares in the last three months with no buying activity reported.
Is YUM Overvalued or Undervalued?
Based on the GF Value™, Yum Brands Inc is currently trading at $152.57, which reflects a 9.2% discount to its fair value estimate of $168.03. This suggests that the stock may be undervalued, offering a potential opportunity for long-term investors. However, it is important to note that the GF Valuation label classifies the stock as fairly valued, indicating that while there is some margin of safety, caution is warranted when considering entry points. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
The company’s P/E ratio is a critical factor to consider alongside the GF Value™. If the stock continues to show weakness, the undervaluation may not translate into a buying opportunity, especially if market conditions worsen. Therefore, while there is a case to be made for the stock being undervalued, it is essential to consider the risks involved.
How Does YUM's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 24.6x | 25.6x |
| Forward P/E | 22.5x | N/A |
The current P/E (TTM) of 24.6x is 4% below its 5-year median of 25.6x, suggesting that the stock is trading below its historical valuation levels. This analysis aligns with the GF Value™ verdict, reinforcing the narrative that Yum Brands may be undervalued relative to its past performance.
What Does YUM's GF Score™ Tell Us?
| Metric | Rating |
|---|---|
| GF Score™ | 88 |
| Financial Strength | 4/10 |
| Profitability | 9/10 |
| Growth | 9/10 |
| Valuation | 9/10 |
| Momentum | 5/10 |
The GF Score™ of 88 indicates that Yum Brands is positioned well within its sector, particularly excelling in Profitability, Growth, and Valuation with scores of 9/10 each. However, the Financial Strength score of 4/10 is a notable weakness, suggesting potential concerns regarding the company’s leverage and overall financial robustness. The Momentum score of 5/10 reflects mixed performance over recent periods, further emphasizing the need for cautious observation of the stock's price trends.
What Are Insiders Doing with YUM Stock?
In the past three months, insiders at Yum Brands Inc have sold a total of $2.9 million in shares, with no insider buying reported during the same timeframe. This pattern may suggest a lack of confidence from those closest to the company, which could be a point of concern for potential investors. The absence of buying activity from insiders typically indicates that those with the most knowledge of the company do not see immediate value at current price levels.
What This Means for Investors
Based on the GF Value™ assessment, Yum Brands Inc is currently considered undervalued with a fair value estimate suggesting a potential upside. However, the recent insider selling and mixed momentum signals caution that while there is an opportunity, it is essential to remain vigilant about potential risks.
For the complete analysis, visit the Yum Brands Inc YUM stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions
What is YUM's GF Score™?
YUM's GF Score™ is 88/100, indicating a strong overall performance relative to its peers and suggesting potential for long-term returns.
Is YUM overvalued or undervalued?
YUM is currently considered undervalued, with a GF Value™ estimate of $168.03 compared to its current price of $152.57.
What is YUM's P/E ratio?
YUM's P/E ratio is 24.6x (TTM), which is 4% below its 5-year median of 25.6x, indicating that it is trading below its historical valuation levels.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
