YUMNEUTRAL

YUM P/E Ratio Analysis

25.6x

Updated 1235h ago·SEC filings & market data

Key Takeaway

The current P/E ratio of 25.6x means investors are paying $25.60 for every $1 of YUM’s earnings, a common measure of how expensive or cheap a stock is relative to its profits.

Sector Performance

55th percentile

YUM

25.6x

Sector Median

23.1x

Sector Avg

33.8x

Prior Period

24.1x(May 2026)

↓ Declining

📊

Deep Analysis

The current P/E ratio of 25.6x means investors are paying $25.60 for every $1 of YUM’s earnings, a common measure of how expensive or cheap a stock is relative to its profits.

Compared to sector peers, this ratio sits above the sector median of 23.7x and places YUM in the 56th percentile, indicating it is slightly pricier than most companies in its industry. The year-over-year change is not available, but the quarter-over-quarter increase of +6.1% shows the P/E has risen from 24.1x in the prior period. A P/E above the median combined with a quarterly upward trend suggests the stock carries a valuation premium that could imply higher risk if earnings fail to grow to justify the multiple. This metric does not contradict the overall NEUTRAL verdict—the moderate premium and rising trend are consistent with a balanced view, neither strongly bullish nor bearish for current pricing.

Frequently Asked Questions

What does the P/E Ratio tell investors about YUM?

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

How is the P/E Ratio calculated?

P/E Ratio is calculated as: Price / EPS.

Who are YUM's closest peers by P/E Ratio?

The closest peers by P/E Ratio include: CMCSA (7.8x), EG (7.8x), CHRD (7.7x), OXY (7.4x), THC (7.3x).

📚

Learn More About P/E Ratio

DCF Valuation: How to Estimate What a Stock Is Actually Worth

Discounted Cash Flow is the most rigorous way to value a company. It's also the most misunderstood. Here's a plain-English walkthrough with a real example.

The Formula

Price / EPS

Why It Matters

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.