Yum Brands (MIL:1YUM) Margin of Safety % (DCF FCF Based): -44.95% (As of Jun. 29, 2026)


MIL:1YUM Yum Brands Inc MIL:1YUM
65 GF Score
Price €136.30
GF Value €145.87
Valuation Fairly Valued
! 4 Warning Signs
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What is Yum Brands Margin of Safety % (DCF FCF Based)?

Yum Brands MIL:1YUM 65 Margin of Safety % (DCF FCF Based) is -44.95% as of Jun. 29, 2026. GuruFocus rates MIL:1YUM with a GF Score™ of 65/100 and a GF Value™ of €145.87 (Fairly Valued). The stock has 4 warning signs investors should review.

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

Note: Discounted FCF 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 (2026-06-29), Yum Brands's Predictability Rank is 4-Stars. Yum Brands's intrinsic value calculated from the Discounted FCF model is €86.53 and current share price is €136.30. Consequently,

Yum Brands's Margin of Safety % (DCF FCF Based) using Discounted FCF model is -44.95%.

MIL:1YUM vs CMG, DRI, YUMC: Margin of Safety % (DCF FCF Based) Comparison

For the Restaurants subindustry, Yum Brands's Margin of Safety % (DCF FCF Based), along with its competitors' market caps and Margin of Safety % (DCF FCF 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 Brands Margin of Safety % (DCF FCF Based) vs Restaurants Industry

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

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


MIL:1YUM
65GF Score
Yum Brands Inc MIL:1YUM
Margin of Safety % (DCF FCF Based) is just one metric. See GF Score™, valuation, warning signs, and more.
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Yum Brands Margin of Safety % (DCF FCF Based) Calculation

Yum Brands's Margin of Safety % (DCF FCF Based) for today is calculated as

Margin of Safety % (DCF FCF Based)=(Intrinsic Value: DCF (FCF Based)-Current Price)/Intrinsic Value: DCF (FCF Based)
=(94.03-136.30)/94.03
=-44.95 %

* 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 FCF model with default parameters. The calculation method is the same as Discounted Earnings model except free cash flow are used in the calculation instead of earnings per share.

What does a Margin of Safety % (DCF FCF Based) of -44.95% mean?
Yum Brands (MIL:1YUM) has a Margin of Safety % (DCF FCF Based) of -44.95% as of Jun. 29, 2026. Margin of Safety % (DCF FCF Based) is the percent difference between the current price and the intrinsic DCF FCF price. View historical data on Yum Brands.
Is Yum Brands' Margin of Safety % (DCF FCF Based) too high?
Yum Brands' current Margin of Safety % (DCF FCF Based) is -44.95%. Overall, Yum Brands has a GF Score™ of 65/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Yum Brands' Margin of Safety % (DCF FCF Based) compare to CMG and DRI?
Yum Brands' Margin of Safety % (DCF FCF Based) of -44.95% 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 FCF Based) for a Restaurants company?
A good Margin of Safety % (DCF FCF Based) depends on the Restaurants industry context. However, Margin of Safety % (DCF FCF 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 FCF Based) mean?
A high Margin of Safety % (DCF FCF Based) can signal that a stock is expensive relative to its fundamentals. Margin of Safety % (DCF FCF Based) is the percent difference between the current price and the intrinsic DCF FCF price. View historical data on Yum Brands. Yum Brands's current Margin of Safety % (DCF FCF Based) is -44.95%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Yum Brands stock overvalued right now?
Based on GuruFocus' analysis, Yum Brands (MIL:1YUM) is currently considered Fairly Valued. The stock's GF Value™ is €145.87, compared to a current price of €136.30 — trading 6.6% below its estimated fair value. The current Margin of Safety % (DCF FCF Based) is -44.95%. Yum Brands' overall GF Score™ is 65/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Margin of Safety % (DCF FCF Based) calculated?
Margin of Safety % (DCF FCF Based) is calculated from a company's financial statements. For Yum Brands (MIL:1YUM), the current Margin of Safety % (DCF FCF Based) is -44.95% as of Jun. 29, 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 Brands (MIL:1YUM) Overvalued in 2026?

Based on GuruFocus' analysis, Yum Brands stock appears to be undervalued. The current stock price of €136.30 is trading 6.6% below its estimated GF Value™ of €145.87. GuruFocus considers Yum Brands to be Fairly Valued.

Key valuation signals for MIL:1YUM:

  • Margin of Safety % (DCF FCF Based): -44.95%
  • GF Value™: €145.87 vs. price of €136.30 (6.6% below fair value)
  • GF Score™: 65/100 with 4 warning signs

No single metric tells the full story. See the MIL:1YUM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Yum Brands Business Description

Address 1441 Gardiner Lane, Louisville, KY, USA, 40213
As of the end of 2025, Yum Brands generated over $68 billion in systemwide sales from more than 63,000 restaurants across 155 markets, making it the world's second-largest restaurant firm by dollar sales. Its portfolio includes KFC (33,897 stores), Pizza Hut (19,974), Taco Bell (9,030), and Habit Burger (384), with 72% of locations in international markets. As 97% of its portfolio is franchised, Yum's business model is tilted toward recurring franchise royalties and marketing contributions (64% of revenue), with the balance derived from sales at company-owned locations. The company traces its roots to a 1997 spinoff of PepsiCo's restaurant assets.
65GF Score

Get the complete analysis for MIL:1YUM

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

€136.30
Price
€145.87
GF Value