YUM PEG Ratio Analysis
Updated 461h ago·SEC filings & market data
Key Takeaway
The PEG ratio, which compares a stock's price-to-earnings (P/E) multiple to its earnings growth rate, currently sits at 0.36x.
Sector Performance
26th percentileYUM
0.36x
Sector Median
0.97x
Sector Avg
2.92x
Prior Period
0.34x(May 2026)
Deep Analysis
The PEG ratio, which compares a stock's price-to-earnings (P/E) multiple to its earnings growth rate, currently sits at 0.36x.
This means investors are paying $0.36 for each unit of expected earnings growth—well below the sector median of 0.92x and ranking YUM in the 28th percentile among peers, indicating it is cheaper relative to growth than most comparable companies. The year-over-year change is not available, but the metric rose 5.9% quarter over quarter, from 0.34x to 0.36x. The low PEG level suggests a potential value opportunity if growth holds, but the recent uptick hints that the discount is narrowing. This combination of a very low ratio with a small upward move implies limited short-term risk but also reduced upside from further compression. Overall, the metric supports the NEUTRAL verdict: the attractive absolute level is tempered by the recent rise and lack of historical trend context.
Frequently Asked Questions
What does the PEG Ratio tell investors about YUM?
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
How is the PEG Ratio calculated?
PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.
Who are YUM's closest peers by PEG Ratio?
The closest peers by PEG Ratio include: EBAY (8.15x), VTR (8.27x), DOV (8.39x), MTD (8.61x), KR (9.25x).
Learn More About PEG Ratio
The Formula
P/E Ratio / EPS Growth Rate
Why It Matters
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
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0.36x
Sector Median
0.97x
Sector Avg
2.92x
How YUM's PEG Ratio compares to sector peers.
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