What Is YUM Fair Value?
Yum! Brands (YUM) fair value estimate using multiple valuation models, updated daily.
As of October 14, 2026, Yum! Brands (YUM) has a composite fair value estimate of $87.02 based on four valuation models: DCF (58% weight), Graham Number (0% weight), PEG (42% weight), and DDM (0% weight). The current market price is $146.69, suggesting the stock is overvalued by 40.7%.
Data as of October 14, 2026 (today)
Composite Fair Value
Overvalued2 of 4 models$87.02
vs. current price of $146.69(-40.7%)
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)
58% 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 →
$88.28
-39.8%Overvalued
Inputs used
DDM (Dividend Discount Model)
0% 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 →
N/A
This stock does not pay a dividend, so the DDM cannot be applied. The composite adjusts by redistributing this weight to the other models.
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)
42% 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.
$63.46
-56.7%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 $146.69 is 39.8% above this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $1.25B | $1.17B |
| Year 2 | $1.33B | $1.17B |
| Year 3 | $1.42B | $1.17B |
| Year 4 | $1.51B | $1.17B |
| Year 5 | $1.62B | $1.17B |
| Year 6 | $1.72B | $1.17B |
| Year 7 | $1.84B | $1.17B |
| Year 8 | $1.96B | $1.18B |
| Year 9 | $2.09B | $1.18B |
| Year 10 | $2.23B | $1.18B |
| Terminal Value | $55.65B | $29.34B |
What Are YUM's Key Financial Metrics?
Earnings & Growth
Current Price
$146.69
EPS (TTM)
$7.94
Forward P/E
21.3
Profit Margin
25.4%
Cash & Balance Sheet
Free Cash Flow
833.2M
EBITDA
3.1B
Book Value
-$26.03
Total Debt
13.4B
What Do Analysts Say About YUM?
Low
$147.00
Average
$171.06
High
$200.00
Upside
+16.6%
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 $87.02. The stock is currently trading at $146.69, which makes it overvalued 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 overvalued. The current price of $146.69 is 40.7% above our estimated fair value of $87.02.
What do Wall Street analysts say about YUM?
22 analysts cover Yum! Brands with a consensus rating of "Buy." The average price target is $171.06, ranging from $147.00 to $200.00. This implies 16.6% upside from the current price.