Yum BrandsHAM:TGR +3.30%88 PEG Ratio is 2.71 as of Jul. 08, 2026, which is 8% below its 10-year median of 2.96. GuruFocus rates HAM:TGR with a GF Score™ of 88/100 and a GF Value™ of €147.52 (Fairly Valued). The stock has 6 warning signs investors should review. Among 112 Restaurants companies, Yum Brands ranks worse than 71.43% on this metric.
PE Ratio without NRI / 5-Year EBITDA Growth Rate*
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Yum Brands's PE Ratio without NRI is 27.39. Yum Brands's 5-Year EBITDA growth rate is 10.10%. Therefore, Yum Brands's PEG Ratio for today is 2.71.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Yum Brands's PEG Ratio or its related term are showing as below:
HAM:TGR'
s PEG Ratio Range Over the Past 10 Years
Min: 0.97 Med: 2.96 Max: 622
Current: 2.65
During the past 13 years, Yum Brands's highest PEG Ratio was 622.00. The lowest was 0.97. And the median was 2.96.
HAM:TGR's PEG Ratio is ranked worse than 71.43% of 112
companies
in the Restaurants industry
Industry Median: 1.275
vs HAM:TGR: 2.65
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Yum Brands (HAM:TGR) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Yum Brands PEG Ratio Related Terms
Yum Brands PEG Ratio Historical Data
* Premium members only.
The historical data trend for Yum Brands's PEG Ratio can be seen below:
* 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.
For the Restaurants subindustry, Yum Brands's PEG Ratio, along with its competitors' market caps and PEG Ratio 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 PEG Ratio vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Yum Brands's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Yum Brands's PEG Ratio falls into.
* 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Yum Brands (HAM:TGR) has a PEG Ratio of 2.71 as of Jul. 08, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Yum Brands and its competitors. This is near median its historical median of 2.96. Over the past decade, Yum Brands' PEG Ratio has ranged from 0.97 to 622.00. According to the industry distribution chart, Yum Brands ranks #80 out of 112 companies in the Restaurants industry, placing it in the top 71.4%.
Is Yum Brands' PEG Ratio too high?
Yum Brands' current PEG Ratio of 2.71 is near median its 10-year median of 2.96. Over the past 10 years, this metric has ranged from a low of 0.97 to a high of 622.00. The Restaurants industry median PEG Ratio is 1.28. Yum Brands' value of 2.71 is 112.5% above this industry median. Based on the distribution chart, Yum Brands ranks #80 out of 112 companies in the Restaurants industry, which is below the industry midpoint. Overall, Yum Brands has a GF Score™ of 88/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Yum Brands' PEG Ratio compare to CMG and DRI?
According to the Restaurants industry distribution chart, Yum Brands ranks #80 out of 112 companies for PEG Ratio. This places Yum Brands in the lower half of its industry. The industry median PEG Ratio is 1.28. Yum Brands' value of 2.71 is 112.5% above this benchmark. Historically, Yum Brands' own PEG Ratio has ranged from 0.97 to 622.00 over the past decade. While the company's 10-year median is 2.96 vs. the industry median of 1.28, Yum Brands has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good PEG Ratio for a Restaurants company?
The median PEG Ratio among Restaurants companies is 1.28, based on 112 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Yum Brands's current PEG Ratio of 2.71 is 112.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Yum Brands and its competitors. For the Restaurants industry, the median PEG Ratio is 1.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yum Brands's current PEG Ratio is 2.71, which is near median its own 10-year median of 2.96. 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 (HAM:TGR) is currently considered Fairly Valued. The stock's GF Value™ is €147.52, compared to a current price of €147.05 — trading 0.3% below its estimated fair value. The current PEG Ratio is 2.71, which is near median its 10-year median of 2.96 and 112.5% above the Restaurants industry median of 1.28. Yum Brands' overall GF Score™ is 88/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For Yum Brands (HAM:TGR), the current PEG Ratio is 2.71 as of Jul. 08, 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 (HAM:TGR) Overvalued in 2026?
Based on GuruFocus' analysis, Yum Brands stock appears to be undervalued.
The current stock price of €147.05 is trading 0.3% below its estimated GF Value™ of €147.52.
GuruFocus considers Yum Brands to be Fairly Valued.
Key valuation signals for HAM:TGR:
PEG Ratio: 2.71 (near median its 10-year median of 2.96)
GF Value™: €147.52 vs. price of €147.05 (0.3% below fair value)
Industry Position: 112.5% above the Restaurants median (#80 of 112)
No single metric tells the full story. See the HAM:TGR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
88GF Score
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