Yum China Valuation
| YUMC Stock | USD 37.73 0.39 1.04% |
At this time, the company appears to be undervalued. Yum China Holdings maintains a prevalent Real Value of $46.66 per share. The last-minute price of the company is $37.73. Our model calculates the value of Yum China Holdings from examining the company fundamentals such as Return On Asset of 0.0594, current valuation of 14.54 B, and Profit Margin of 0.08 % as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors encourage purchasing undervalued securities and exiting overvalued securities since, at some point, asset prices and their ongoing real values will grow together. Key fundamental drivers impacting Yum China's valuation include:
Price Book 2.2803 | Enterprise Value 14.5 B | Enterprise Value Ebitda 9.1692 | Price Sales 1.3304 | Forward PE 18.0505 |
Undervalued
Today
Please note that Yum China's price fluctuation is very steady at this time. Calculation of the real value of Yum China Holdings is based on 3 months time horizon. Increasing Yum China's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Yum China Holdings is useful when determining the fair value of the Yum stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Yum China. Since Yum China is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Yum Stock. However, Yum China's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 37.73 | Real 46.66 | Target 72.88 | Hype 37.63 | Naive 37.59 |
The real value of Yum Stock, also known as its intrinsic value, is the underlying worth of Yum China Holdings Company, which is reflected in its stock price. It is based on Yum China's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Yum China's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Yum China's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Yum China Holdings helps investors to forecast how Yum stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Yum China more accurately as focusing exclusively on Yum China's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Yum China's intrinsic value based on its ongoing forecasts of Yum China's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Yum China's closest peers. When choosing an evaluation method for Yum China Holdings, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Yum China Investments |
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Yum Valuation Trend
Knowing Yum China's actual value is paramount for traders to make sound investment determinations. Yum China's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Yum China's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Yum China's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Yum Market Cap
Yum China Holdings is rated below average in market capitalization category among related companies. Market capitalization of Consumer Discretionary industry is at this time estimated at about 223.94 Billion. Yum China holds roughly 14.61 Billion in market capitalization claiming about 7% of stocks in Consumer Discretionary industry.Yum China Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Yum China's current stock value. Our valuation model uses many indicators to compare Yum China value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Yum China competition to find correlations between indicators driving Yum China's intrinsic value. More Info.Yum China Holdings is rated below average in price to earning category among related companies. It is rated below average in price to book category among related companies fabricating about 0.10 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Yum China Holdings is roughly 9.96 . The current year's Price To Book Ratio is expected to grow to 4.76. Comparative valuation analysis is a catch-all model that can be used if you cannot value Yum China by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Yum China's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Yum China's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Yum China's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Yum China and how it compares across the competition.
About Yum China Valuation
The stock valuation mechanism determines the current worth of Yum China Holdings on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Yum China Holdings. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Yum China Holdings based exclusively on its fundamental and basic technical indicators. By analyzing Yum China's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Yum China's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Yum China. We calculate exposure to Yum China's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Yum China's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 8.1 B | 8.5 B | |
| Pretax Profit Margin | 0.11 | 0.07 | |
| Operating Profit Margin | 0.11 | 0.06 | |
| Net Profit Margin | 0.08 | 0.05 | |
| Gross Profit Margin | 0.17 | 0.12 |
8 Steps to conduct Yum China's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Yum China's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Yum China's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Yum China's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Yum China's revenue streams: Identify Yum China's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Yum China's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Yum China's growth potential: Evaluate Yum China's management, business model, and growth potential.
- Determine Yum China's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Yum China's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Yum China represents a small ownership stake in the entity. As a stockholder of Yum, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Yum China Dividends Analysis For Valuation
As of April 15, 2024, Dividends Paid is expected to decline to about 133.1 M. In addition to that, Dividend Yield is expected to decline to 0.01. The current year's Price Earnings Ratio is expected to grow to 22.41, whereas Retained Earnings are forecasted to decline to about 1.4 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 216 M | 133.1 M | |
| Dividend Yield | 0.01 | 0.01 | |
| Dividend Payout Ratio | 0.26 | 0.18 | |
| Dividend Paid And Capex Coverage Ratio | (2.98) | (3.13) |
There are various types of dividends Yum China can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Yum shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Yum China Holdings directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Yum pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Yum China by the value of the dividends paid out.
Yum China Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Yum China does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 420 M | |
| Quarterly Earnings Growth Y O Y | 0.993 | |
| Forward Price Earnings | 18.0505 |
Yum China Current Valuation Indicators
Valuation refers to the process of determining the present value of Yum China Holdings and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Yum we look at many different elements of the entity such as Yum's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Yum China's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Yum China's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Yum China, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Yum China's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Yum China's worth.When determining whether Yum China Holdings offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Yum China's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Yum China Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Yum China Holdings Stock: Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Yum China Holdings. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in population. You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Complementary Tools for Yum Stock analysis
When running Yum China's price analysis, check to measure Yum China's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Yum China is operating at the current time. Most of Yum China's value examination focuses on studying past and present price action to predict the probability of Yum China's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Yum China's price. Additionally, you may evaluate how the addition of Yum China to your portfolios can decrease your overall portfolio volatility.
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Is Yum China's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Yum China. If investors know Yum will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Yum China listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.993 | Dividend Share 0.52 | Earnings Share 1.97 | Revenue Per Share 26.389 | Quarterly Revenue Growth 0.194 |
The market value of Yum China Holdings is measured differently than its book value, which is the value of Yum that is recorded on the company's balance sheet. Investors also form their own opinion of Yum China's value that differs from its market value or its book value, called intrinsic value, which is Yum China's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Yum China's market value can be influenced by many factors that don't directly affect Yum China's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Yum China's value and its price as these two are different measures arrived at by different means. Investors typically determine if Yum China is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Yum China's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.