Is Yum! Brands, Inc. (YUM) Undervalued?
Based on the current stock price of $153.24 and a P/E ratio of 29.87,Yum! Brands, Inc. has a PEG ratio of 2.80.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 2.80, YUM appears to be potentially overvalued relative to its growth rate of 10.67%.
Based on a PEG ratio of 2.39 (adjusted for dividends).
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How we analyzed YUM
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 29.87and dividing it by the annual growth rate of 10.67%.
PEG = 29.87 (P/E) ÷ 10.67 (Growth) = 2.80
Frequently Asked Questions about YUM
What is the current PEG Ratio for Yum! Brands, Inc. (YUM)?+
The current PEG Ratio for Yum! Brands, Inc. is 2.80. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is YUM stock undervalued right now?+
Based on the PEG ratio of 2.80, Yum! Brands, Inc. appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for YUM?+
The PEGY ratio for Yum! Brands, Inc. is 2.39. This metric accounts for dividend yield (1.85%), providing a more complete valuation picture.