Yum China HoldingsYUMC -0.64%81 PEG Ratio is 1.31 as of Jul. 07, 2026, which is 38% below its 10-year median of 2.13. GuruFocus rates YUMC with a GF Score™ of 81/100 and a GF Value™ of $54.06 (Modestly Undervalued). Among 112 Restaurants companies, Yum China Holdings ranks worse than 52.68% on this metric.
* 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 China Holdings's PEG Ratio or its related term are showing as below:
YUMC'
s PEG Ratio Range Over the Past 10 Years
Min: 0.6 Med: 2.13 Max: 138.42
Current: 1.31
During the past 13 years, Yum China Holdings's highest PEG Ratio was 138.42. The lowest was 0.60. And the median was 2.13.
YUMC's PEG Ratio is ranked worse than 52.68% of 112
companies
in the Restaurants industry
Industry Median: 1.285
vs YUMC: 1.31
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Yum China Holdings (NYSE:YUMC) 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 China Holdings PEG Ratio Related Terms
Yum China Holdings PEG Ratio Historical Data
* Premium members only.
The historical data trend for Yum China Holdings'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 China Holdings'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 China Holdings PEG Ratio vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Yum China Holdings's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Yum China Holdings'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 China Holdings (YUMC) has a PEG Ratio of 1.31 as of Jul. 07, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Yum China Holdings and its competitors. This is 38% below median its historical median of 2.13. Over the past decade, Yum China Holdings' PEG Ratio has ranged from 0.60 to 138.42. According to the industry distribution chart, Yum China Holdings ranks #59 out of 112 companies in the Restaurants industry, placing it in the top 52.7%.
Is Yum China Holdings' PEG Ratio too high?
Yum China Holdings' current PEG Ratio of 1.31 is 38% below median its 10-year median of 2.13. Over the past 10 years, this metric has ranged from a low of 0.60 to a high of 138.42. The Restaurants industry median PEG Ratio is 1.29. Yum China Holdings' value of 1.31 is 1.9% above this industry median. Based on the distribution chart, Yum China Holdings ranks #59 out of 112 companies in the Restaurants industry, which is below the industry midpoint. 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' PEG Ratio compare to TXRH and DPZ?
According to the Restaurants industry distribution chart, Yum China Holdings ranks #59 out of 112 companies for PEG Ratio. This places Yum China Holdings in the lower half of its industry. The industry median PEG Ratio is 1.29. Yum China Holdings' value of 1.31 is 1.9% above this benchmark. Historically, Yum China Holdings' own PEG Ratio has ranged from 0.60 to 138.42 over the past decade. While the company's 10-year median is 2.13 vs. the industry median of 1.29, Yum China Holdings 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 1.29, 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 China Holdings's current PEG Ratio of 1.31 is 1.9% 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 China Holdings and its competitors. For the Restaurants industry, the median PEG Ratio is 1.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yum China Holdings's current PEG Ratio is 1.31, which is 38% below median its own 10-year median of 2.13. 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 $54.06, compared to a current price of $42.22 — trading 21.9% below its estimated fair value. The current PEG Ratio is 1.31, which is 38% below median its 10-year median of 2.13 and 1.9% above the Restaurants industry median of 1.29. 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 PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For Yum China Holdings (YUMC), the current PEG Ratio is 1.31 as of Jul. 07, 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 $42.22 is trading 21.9% below its estimated GF Value™ of $54.06.
GuruFocus considers Yum China Holdings to be Modestly Undervalued.
Key valuation signals for YUMC:
PEG Ratio: 1.31 (38% below median its 10-year median of 2.13)
GF Value™: $54.06 vs. price of $42.22 (21.9% below fair value)
Industry Position: 1.9% above the Restaurants median (#59 of 112)
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 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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