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Yum Brands PE Ratio

: 23.71 (As of Today)
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The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2022-01-26), Yum Brands's share price is $123.06. Yum Brands's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2021 was $5.19. Therefore, Yum Brands's PE Ratio for today is 23.71.

Good Sign:

Yum Brands Inc stock PE Ratio (=23.51) is close to 1-year low of 23.51


The historical rank and industry rank for Yum Brands's PE Ratio or its related term are showing as below:

NYSE:YUM' s PE Ratio Range Over the Past 10 Years
Min: 13.6   Med: 19.9   Max: 37.34
Current: 23.7

13.6
37.34

During the past 13 years, the highest PE Ratio of Yum Brands was 37.34. The lowest was 13.60. And the median was 19.90.


NYSE:YUM's PE Ratio is ranked higher than
52% of the 165 Companies
in the Restaurants industry.

( Industry Median: 24.46 vs. NYSE:YUM: 23.70 )

Yum Brands's Earnings per Share (Diluted) for the three months ended in Sep. 2021 was $1.75. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2021 was $5.19.

As of today (2022-01-26), Yum Brands's share price is $123.06. Yum Brands's EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2021 was $5.19. Therefore, Yum Brands's PE Ratio without NRI for today is 23.71.

During the past 13 years, Yum Brands's highest PE Ratio without NRI was 37.34. The lowest was 13.60. And the median was 22.31.

Yum Brands's EPS without NRI for the three months ended in Sep. 2021 was $1.75. Its EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2021 was $5.19.

During the past 12 months, Yum Brands's average EPS without NRI Growth Rate was 50.90% per year. During the past 3 years, the average EPS without NRI Growth Rate was -8.00% per year. During the past 5 years, the average EPS without NRI Growth Rate was 10.20% per year. During the past 10 years, the average EPS without NRI Growth Rate was 4.40% per year.

During the past 13 years, Yum Brands's highest 3-Year average EPS without NRI Growth Rate was 30.90% per year. The lowest was -14.80% per year. And the median was 12.05% per year.

Yum Brands's EPS (Basic) for the three months ended in Sep. 2021 was $1.78. Its EPS (Basic) for the trailing twelve months (TTM) ended in Sep. 2021 was $5.28.


Yum Brands PE Ratio Historical Data

The historical data trend for Yum Brands's PE 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 Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
PE Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 15.45 21.65 19.60 24.33 36.93

Yum Brands Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
PE Ratio 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 Premium Member Only Premium Member Only Premium Member Only 26.54 36.93 28.93 26.38 23.57

Competitive Comparison

For the Restaurants subindustry, Yum Brands's PE Ratio, along with its competitors' market caps and PE 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 PE Ratio Distribution

For the Restaurants industry and Consumer Cyclical sector, Yum Brands's PE Ratio distribution charts can be found below:

* The bar in red indicates where Yum Brands's PE Ratio falls into.



Yum Brands PE Ratio Calculation

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

Yum Brands's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=123.06/5.190
=23.71

Yum Brands's Share Price of today is $123.06.
Yum Brands's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $5.19.

* 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.

It can also be calculated from the numbers for the whole company:


There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio or PE Ratio (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


Yum Brands  (NYSE:YUM) PE Ratio Explanation

The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.

If a company loses money, the PE Ratio becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.

Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .

PE Ratio can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio.


Yum Brands PE Ratio Related Terms

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


Yum Brands Business Description

Yum Brands logo
Industry
Consumer Cyclical » Restaurants NAICS : 722511 SIC : 5812
Address
1441 Gardiner Lane, Louisville, KY, USA, 40213
Yum Brands is a U.S.-based restaurant operator featuring a portfolio of four brands: KFC (25,700 global units), Pizza Hut (17,800 units), Taco Bell (7,550 units), and The Habit Burger (295 units). With $50 billion in 2020 systemwide sales, the firm is the second-largest restaurant company in the world, behind McDonald's ($90 billion) but ahead of Restaurant Brands International ($31 billion) and Starbucks ($19 billion). Yum is 98% franchised, with the largest franchisee, Yum China, created via a 2016 spin-off transaction (after which Yum China agreed to pay 3% royalties to Yum Brands in perpetuity). Yum is the newest evolution of Tricon Brands, formerly a division of PepsiCo, and generates the bulk of its revenue from franchise royalties and marketing contributions.
Executives
Lowings Anthony officer: CEO-KFC Division 1441 GARDINER LANE LOUISVILLE KY 40213
Russell David Eric officer: Vice President, Controller 1441 GARDINER LANE LOUISVILLE KY 40213
Skeans Tracy L officer: Chief People Officer 1441 GARDINER LANE LOUISVILLE KY 40213
Gibbs David W director, officer: Chief Executive Officer 7100 CORPORATE DRIVE PLANO TX 75024
Nelson Thomas C director 2001 REXFORD ROAD CHARLOTTE NC 28211
Cavanagh Michael J director 1 BANK ONE PLAZA IL1-0877 CHICAGO IL 60670
Domier Tanya L director C/O NORDSTROM, INC. 1617 SIXTH AVENUE SEATTLE WA 98101
Creed Greg director 1441 GARDINER LANE LOUISVILLE KY 40213
Alves Paget Leonard director SPRINT NEXTEL 6200 SPRINT PARKWAY KSOPHF0410 - 4A403 OVERLAND PARK KS 66251
Skala Justin director C/O COLGATE-PALMOLIVE COMPANY 300 PARK AVENUE NEW YORK NY 10022
Turner Christopher Lee officer: Chief Financial Officer 1441 GARDINER LANE LOUISVILLE KY 40213
King Mark James officer: CEO - Taco Bell 1441 GARDINER LANE LOUISVILLE KY 40213
Starrs Artie officer: CEO - Pizza Hut 1441 GARDINER LANE LOUISVILLE KY 40213
Walter Robert D director 200 VESEY STREET NEW YORK NY 10285
Cornell Brian C director 1000 NICOLLET MALL MINNEAPOLIS MN 55403

Yum Brands Headlines

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