What Is YUM Fair Value?
Yum! Brands (YUM) fair value estimate using multiple valuation models, updated daily.
As of August 29, 2026, Yum! Brands (YUM) has a composite fair value estimate of $132.32 based on four valuation models: DCF (47% weight), Graham Number (0% weight), PEG (33% weight), and DDM (20% weight). The current market price is $153.86, suggesting the stock is fair value by 14.0%.
Data as of August 29, 2026 (today)
Composite Fair Value
Fair Value3 of 4 models$132.32
vs. current price of $153.86(-14.0%)
How Is YUM Fair Value Calculated?
Four independent models estimate what YUM is worth. Each uses different inputs and assumptions. The composite blends them by weight.
YUM Intrinsic Value
Forward-looking models based on future cash flows
DCF (Discounted Cash Flow)
47% weightEstimates how much cash the company will generate over the next 10 years, then calculates what all that future cash is worth in today's dollars. Includes a 15% safety cushion. Try the standalone DCF calculator →
$139.65
-9.2%Fair Value
Inputs used
DDM (Dividend Discount Model)
20% weightIf a company pays you dividends, this model asks: how much are all those future dividend payments worth today? Only works for stocks that pay dividends. Try the intrinsic value calculator →
$156.40
+1.7%Fair Value
Inputs used
YUM Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
0% weightCreated by legendary investor Benjamin Graham. It looks at two things: how much the company earns (EPS) and what its assets are worth (Book Value), then calculates the maximum price a careful investor should pay. Try the fair value calculator →
N/A
Requires positive EPS and book value. Yum! Brands currently has negative earnings, so the Graham formula cannot be applied.
Inputs used
PEG (Price/Earnings to Growth)
33% weightChecks if you're paying a fair price for the company's growth. A fast-growing company deserves a higher price than a slow one. This model finds the right price based on how fast earnings are growing.
$73.12
-52.5%Overvalued
Inputs used
What If You Change the Assumptions?
Drag the sliders to test different scenarios. Tap the ? buttons to learn what each input means.
Your DCF Fair Value
Current price $153.86 is 9.2% above this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $1.30B | $1.22B |
| Year 2 | $1.44B | $1.27B |
| Year 3 | $1.60B | $1.32B |
| Year 4 | $1.78B | $1.37B |
| Year 5 | $1.97B | $1.43B |
| Year 6 | $2.19B | $1.49B |
| Year 7 | $2.43B | $1.55B |
| Year 8 | $2.70B | $1.61B |
| Year 9 | $3.00B | $1.68B |
| Year 10 | $3.33B | $1.75B |
| Terminal Value | $81.83B | $42.89B |
What Are YUM's Key Financial Metrics?
Earnings & Growth
Current Price
$153.86
EPS (TTM)
$7.94
Forward P/E
20.6
Profit Margin
25.4%
Cash & Balance Sheet
Free Cash Flow
833.2M
EBITDA
3.1B
Book Value
-$26.39
Total Debt
13.4B
What Do Analysts Say About YUM?
Low
$147.00
Average
$173.34
High
$200.00
Upside
+12.7%
YUM Fair Value FAQ
What is the fair value of YUM?
Based on our composite model (DCF 35%, Graham 25%, PEG 25%, DDM 15%), YUM's estimated fair value is $132.32. The stock is currently trading at $153.86, which makes it fair value by our analysis.
How is YUM's fair value calculated?
We use four valuation methods: Discounted Cash Flow (DCF), Graham Number, PEG-based Fair Value, and Dividend Discount Model (for dividend-paying stocks). The composite score weights DCF at 35%, Graham and PEG at 25% each, and DDM at 15%. When a model can't be applied, its weight is redistributed proportionally.
Is YUM overvalued or undervalued?
Based on our analysis, YUM is fair value. The current price of $153.86 is 14.0% above our estimated fair value of $132.32.
What do Wall Street analysts say about YUM?
22 analysts cover Yum! Brands with a consensus rating of "Buy." The average price target is $173.34, ranging from $147.00 to $200.00. This implies 12.7% upside from the current price.