YUMC (Yum China Holdings) Margin of Safety % (DCF Earnings Based): -15.44% (As of Jun. 24, 2026)


YUMC Yum China Holdings Inc YUMC
81 GF Score
Price $41.05
GF Value $53.83
Valuation Modestly Undervalued
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What is Yum China Holdings Margin of Safety % (DCF Earnings Based)?

Yum China Holdings YUMC +0.22% 81 Margin of Safety % (DCF Earnings Based) is -15.44% as of Jun. 24, 2026. GuruFocus rates YUMC with a GF Score™ of 81/100 and a GF Value™ of $53.83 (Modestly Undervalued).

Margin of Safety % (DCF Earnings Based) = (Intrinsic Value: DCF (Earnings Based) - Current Price) / Intrinsic Value: DCF (Earnings Based).

Note: Discounted Earnings model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's Predictability Rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

As of today (2026-06-24), Yum China Holdings's Predictability Rank is 3-Stars. Yum China Holdings's intrinsic value calculated from the Discounted Earnings model is $35.56 and current share price is $41.05. Consequently,

Yum China Holdings's Margin of Safety % (DCF Earnings Based) using Discounted Earnings model is -15.44%.

YUMC vs TXRH, DPZ, LKNCY: Margin of Safety % (DCF Earnings Based) Comparison

For the Restaurants subindustry, Yum China Holdings's Margin of Safety % (DCF Earnings Based), along with its competitors' market caps and Margin of Safety % (DCF Earnings Based) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Yum China Holdings Margin of Safety % (DCF Earnings Based) vs Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Yum China Holdings's Margin of Safety % (DCF Earnings Based) distribution charts can be found below:

* The bar in red indicates where Yum China Holdings's Margin of Safety % (DCF Earnings Based) falls into.


YUMC
81GF Score
Yum China Holdings Inc YUMC
Margin of Safety % (DCF Earnings Based) is just one metric. See GF Score™, valuation, warning signs, and more.
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Yum China Holdings Margin of Safety % (DCF Earnings Based) Calculation

Yum China Holdings's Margin of Safety % (DCF Earnings Based) for today is calculated as

Margin of Safety % (DCF Earnings Based)=(Intrinsic Value: DCF (Earnings Based)-Current Price)/Intrinsic Value: DCF (Earnings Based)
=(35.56-41.05)/35.56
=-15.44 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The intrinsic value is calculated from the Discounted Earnings model with default parameters. The calculation method is the same as Discounted Cash Flow model except earnings are used in the calculation instead of free cash flow.

What does a Margin of Safety % (DCF Earnings Based) of -15.44% mean?
Yum China Holdings (YUMC) has a Margin of Safety % (DCF Earnings Based) of -15.44% as of Jun. 24, 2026. Margin of Safety % (DCF Earnings Based) is the percent difference between the current price and the intrinsic DCF Earnings price. View historical data on Yum China Holdings.
Is Yum China Holdings' Margin of Safety % (DCF Earnings Based) too high?
Yum China Holdings' current Margin of Safety % (DCF Earnings Based) is -15.44%. Overall, Yum China Holdings has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Yum China Holdings' Margin of Safety % (DCF Earnings Based) compare to TXRH and DPZ?
Yum China Holdings' Margin of Safety % (DCF Earnings Based) of -15.44% can be compared against companies in the Restaurants industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Margin of Safety % (DCF Earnings Based) for a Restaurants company?
A good Margin of Safety % (DCF Earnings Based) depends on the Restaurants industry context. However, Margin of Safety % (DCF Earnings Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Margin of Safety % (DCF Earnings Based) mean?
A high Margin of Safety % (DCF Earnings Based) can signal that a stock is expensive relative to its fundamentals. Margin of Safety % (DCF Earnings Based) is the percent difference between the current price and the intrinsic DCF Earnings price. View historical data on Yum China Holdings. Yum China Holdings's current Margin of Safety % (DCF Earnings Based) is -15.44%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Yum China Holdings stock overvalued right now?
Based on GuruFocus' analysis, Yum China Holdings (YUMC) is currently considered Modestly Undervalued. The stock's GF Value™ is $53.83, compared to a current price of $41.05 — trading 23.7% below its estimated fair value. The current Margin of Safety % (DCF Earnings Based) is -15.44%. Yum China Holdings' overall GF Score™ is 81/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Margin of Safety % (DCF Earnings Based) calculated?
Margin of Safety % (DCF Earnings Based) is calculated from a company's financial statements. For Yum China Holdings (YUMC), the current Margin of Safety % (DCF Earnings Based) is -15.44% as of Jun. 24, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Yum China Holdings (YUMC) Overvalued in 2026?

Based on GuruFocus' analysis, Yum China Holdings stock appears to be undervalued. The current stock price of $41.05 is trading 23.7% below its estimated GF Value™ of $53.83. GuruFocus considers Yum China Holdings to be Modestly Undervalued.

Key valuation signals for YUMC:

  • Margin of Safety % (DCF Earnings Based): -15.44%
  • GF Value™: $53.83 vs. price of $41.05 (23.7% below fair value)
  • GF Score™: 81/100

No single metric tells the full story. See the YUMC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Yum China Holdings Business Description

Address 20 Tian Yao Qiao Road, Yum China Building, Shanghai, CHN, 200030
Yum China is the largest restaurant operator in China, with over 18,000 locations and USD 12 billion in systemwide sales as of 2025. It generates revenue primarily from its own restaurants and franchise fees. While KFC and Pizza Hut are its flagship brands, Yum China's portfolio also includes Little Sheep, Taco Bell, Huang Ji Huang, and Lavazza.As a trademark licensee of Yum Brands, Yum China pays 3% of KFC and Pizza Hut's systemwide sales to its former parent, from which it spun off in 2016. However, even before the separation, Yum China was granted substantial autonomy, giving its Chinese leadership decision-making authority over menu, supply chain, and marketing—an unusual practice for Western chains at the time.
81GF Score

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Margin of Safety % (DCF Earnings Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$41.05
Price
$53.83
GF Value