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Yum Brands (WBO:YUM) PEG Ratio : 4.90 (As of Apr. 26, 2024)


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What is Yum Brands PEG Ratio?

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 27.43. Yum Brands's 5-Year EBITDA growth rate is 5.60%. Therefore, Yum Brands's PEG Ratio for today is 4.90.

* 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:

WBO:YUM' s PEG Ratio Range Over the Past 10 Years
Min: 0.97   Med: 2.78   Max: 622
Current: 4.89


During the past 13 years, Yum Brands's highest PEG Ratio was 622.00. The lowest was 0.97. And the median was 2.78.


WBO:YUM's PEG Ratio is ranked worse than
77.48% of 111 companies
in the Restaurants industry
Industry Median: 2.04 vs WBO:YUM: 4.89

Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.


Yum Brands PEG Ratio Historical Data

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.

* Premium members only.

Yum Brands PEG Ratio Chart

Yum Brands Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PEG Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.68 3.38 33.33 - 3.58

Yum Brands Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
PEG Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - 584.40 13.81 5.41 3.58

Competitive Comparison of Yum Brands's PEG Ratio

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's PEG Ratio Distribution in the 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.



Yum Brands PEG Ratio Calculation

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The ratio we use is the 5-Year EBITDA growth rate.

Yum Brands's PEG Ratio for today is calculated as

PEG Ratio=PE Ratio without NRI/5-Year EBITDA Growth Rate*
=27.434827945777/5.60
=4.90

* 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  (WBO:YUM) 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

Thank you for viewing the detailed overview of Yum Brands's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Yum Brands (WBO:YUM) Business Description

Traded in Other Exchanges
Address
1441 Gardiner Lane, Louisville, KY, USA, 40213
Yum Brands is a U.S.-based restaurant operator featuring a portfolio of four brands: KFC (27,760 global units at year-end 2022), Pizza Hut (19,034 units), Taco Bell (8,203 units), and The Habit Burger Grill (346 units). With $59 billion in 2022 systemwide sales, the firm is the second-largest restaurant company in the world behind McDonald's ($116 billion), ahead of Restaurant Brands International ($39 billion) and Starbucks ($27 billion). Yum is 98% franchised, with the largest franchisee, Yum China, spun out in 2016 (after which Yum China agreed to pay 3% royalties to Yum Brands in perpetuity). Yum is the newest evolution of Tricon, formerly a division of PepsiCo, and generates the bulk of its revenue from franchise royalties and marketing contributions.