Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
YUM! Brands Inc., current price multiples
| YUM! Brands Inc. | Airbnb Inc. | Booking Holdings Inc. | Chipotle Mexican Grill Inc. | McDonald’s Corp. | Starbucks Corp. | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Current share price (P) | $88.25 | ||||||
| No. shares of common stock outstanding | 367,005,511 | ||||||
| Growth rate (g) | 33.28% | ||||||
| Earnings per share (EPS) | $3.52 | ||||||
| Next year expected EPS | $4.70 | ||||||
| Operating profit per share | $5.23 | ||||||
| Sales per share | $35.71 | ||||||
| Book value per share (BVPS) | $2.48 | ||||||
| Valuation Ratios (Price Multiples) | |||||||
| Price to earnings (P/E) | 25.05 | 32.02 | 31.63 | 49.18 | 26.08 | 28.69 | |
| Price to next year expected earnings | 18.79 | 36.54 | 20.72 | 36.93 | — | — | |
| Price-earnings-growth (PEG) | 0.75 | — | 0.60 | 1.48 | — | — | |
| Price to operating profit (P/OP) | 16.86 | 33.21 | 24.62 | 39.37 | 18.31 | 19.95 | |
| Price to sales (P/S) | 2.47 | 7.64 | 7.84 | 6.67 | 8.27 | 2.98 | |
| Price to book value (P/BV) | 35.55 | 10.08 | — | 20.64 | — | — | |
Based on: 10-K (reporting date: 2015-12-26).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
YUM! Brands Inc., historical price multiples
Based on: 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31).
- Price to Earnings (P/E) Ratio
- The price to earnings ratio exhibits notable fluctuation over the assessed period. It begins at 22.86 in 2011, decreases to 18.22 in 2012, then rises sharply to a peak of 31.34 in 2014 before retreating to 21.97 in 2015. This indicates variable investor sentiment or changes in earnings performance, with the peak suggesting a period of elevated price expectations relative to earnings in 2014.
- Price to Operating Profit (P/OP) Ratio
- Similarly, the price to operating profit ratio follows a comparable fluctuation pattern. Starting at 16.62 in 2011, it declines to its lowest point of 12.68 in 2012, increases steadily until it reaches 21.16 in 2014, and then falls back to 14.79 in 2015. This pattern suggests that the valuation of operating profits experienced considerable volatility, particularly the sharp increase in 2014 and subsequent decrease in 2015.
- Price to Sales (P/S) Ratio
- The price to sales ratio demonstrates relative stability throughout the five-year period, with slight variations. It starts at 2.39 in 2011, decreases modestly to 2.13 in 2012, and then hovers around 2.48 in 2013 and 2014, before declining again to 2.17 in 2015. This stability suggests consistent market valuation relative to sales, with minor fluctuations possibly due to changing sales performance or market conditions.
- Price to Book Value (P/BV) Ratio
- The price to book value ratio shows a rising trend particularly significant toward the latter years. After declining from 16.54 in 2011 to 13.51 in 2012, it increases gradually to 14.98 in 2013, then surges to 21.29 in 2014, and further escalates to 31.19 by 2015. This considerable increase indicates that the market increasingly valued the company’s net assets during this period, potentially reflecting enhanced investor confidence, asset revaluation, or growth expectations.
Price to Earnings (P/E)
YUM! Brands Inc., historical P/E calculation, comparison to benchmarks
| Dec 26, 2015 | Dec 27, 2014 | Dec 28, 2013 | Dec 29, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 408,711,522 | 433,115,252 | 442,931,286 | 450,729,244 | 460,414,239 | |
| Selected Financial Data (US$) | ||||||
| Net income, YUM! Brands, Inc. (in millions) | 1,293) | 1,051) | 1,091) | 1,597) | 1,319) | |
| Earnings per share (EPS)2 | 3.16 | 2.43 | 2.46 | 3.54 | 2.86 | |
| Share price1, 3 | 69.52 | 76.05 | 73.24 | 64.56 | 65.50 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 21.97 | 31.34 | 29.73 | 18.22 | 22.86 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Airbnb Inc. | — | — | — | — | — | |
| Booking Holdings Inc. | — | — | — | — | — | |
| Chipotle Mexican Grill Inc. | — | — | — | — | — | |
| McDonald’s Corp. | — | — | — | — | — | |
| Starbucks Corp. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31).
1 Data adjusted for splits and stock dividends.
2 2015 Calculation
EPS = Net income, YUM! Brands, Inc. ÷ No. shares of common stock outstanding
= 1,293,000,000 ÷ 408,711,522 = 3.16
3 Closing price as at the filing date of YUM! Brands Inc. Annual Report.
4 2015 Calculation
P/E ratio = Share price ÷ EPS
= 69.52 ÷ 3.16 = 21.97
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited fluctuations over the five-year period. Starting at $65.50 in 2011, it experienced a slight decrease to $64.56 in 2012. Subsequently, there was an upward movement peaking at $76.05 in 2014, followed by a decline to $69.52 in 2015. Overall, the share price showed moderate volatility without a clear directional trend.
- Earnings Per Share (EPS) Trend
- EPS demonstrated variability during the analyzed years. It increased from $2.86 in 2011 to a high of $3.54 in 2012, but then dropped notably to $2.46 in 2013 and marginally declined further to $2.43 in 2014. In 2015, EPS recovered to $3.16. This pattern suggests fluctuations in profitability with some recovery in the final year.
- Price-to-Earnings (P/E) Ratio Trend
- The P/E ratio showed significant variation, initially declining from 22.86 in 2011 to 18.22 in 2012, indicating that the market priced the stock more conservatively relative to earnings in 2012. Thereafter, it rose sharply to reach a peak of 31.34 in 2014, reflecting increased market expectations or lower EPS in that year. The ratio then fell to 21.97 in 2015, aligning more closely with earlier levels. This fluctuation highlights changing investor sentiment and earnings dynamics.
- Summary of Financial Performance
- The company's financial indicators reveal inconsistent earning performance alongside fluctuating market valuation. While EPS values experienced notable ups and downs, share prices generally moved in a similar pattern but with less pronounced variation. The substantial changes in the P/E ratio indicate variability in market perceptions of the stock's value relative to earnings, peaking in 2014 before normalizing. Overall, the data points to a period marked by earnings volatility and corresponding shifts in market valuation metrics.
Price to Operating Profit (P/OP)
YUM! Brands Inc., historical P/OP calculation, comparison to benchmarks
| Dec 26, 2015 | Dec 27, 2014 | Dec 28, 2013 | Dec 29, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 408,711,522 | 433,115,252 | 442,931,286 | 450,729,244 | 460,414,239 | |
| Selected Financial Data (US$) | ||||||
| Operating profit (in millions) | 1,921) | 1,557) | 1,798) | 2,294) | 1,815) | |
| Operating profit per share2 | 4.70 | 3.59 | 4.06 | 5.09 | 3.94 | |
| Share price1, 3 | 69.52 | 76.05 | 73.24 | 64.56 | 65.50 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 14.79 | 21.16 | 18.04 | 12.68 | 16.62 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Airbnb Inc. | — | — | — | — | — | |
| Booking Holdings Inc. | — | — | — | — | — | |
| Chipotle Mexican Grill Inc. | — | — | — | — | — | |
| McDonald’s Corp. | — | — | — | — | — | |
| Starbucks Corp. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31).
1 Data adjusted for splits and stock dividends.
2 2015 Calculation
Operating profit per share = Operating profit ÷ No. shares of common stock outstanding
= 1,921,000,000 ÷ 408,711,522 = 4.70
3 Closing price as at the filing date of YUM! Brands Inc. Annual Report.
4 2015 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 69.52 ÷ 4.70 = 14.79
5 Click competitor name to see calculations.
- Share Price
- The share price showed a fluctuating trend over the five-year period. It started at $65.50 in 2011, slightly declined to $64.56 in 2012, then increased significantly to $73.24 in 2013. The upward movement continued, reaching $76.05 in 2014, before dropping to $69.52 in 2015. This indicates moderate volatility with a peak in 2014 followed by a decline the following year.
- Operating Profit per Share
- Operating profit per share experienced notable variability during the period. It grew from $3.94 in 2011 to a high of $5.09 in 2012, then decreased sharply to $4.06 in 2013 and further declined to $3.59 in 2014. In 2015, there was a recovery with an increase to $4.70. This suggests some operational challenges after 2012, with a rebound in performance by 2015.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio displayed significant fluctuations, inversely related in part to changes in operating profit per share. It started relatively high at 16.62 in 2011, decreased to 12.68 in 2012 reflecting higher operating profit relative to share price, then increased substantially to 18.04 in 2013 and peaked at 21.16 in 2014. By 2015, it fell back to 14.79. The elevated ratios in 2013 and 2014 suggest investor expectations or market valuation outpaced the operating profit performance during those years.
Price to Sales (P/S)
YUM! Brands Inc., historical P/S calculation, comparison to benchmarks
| Dec 26, 2015 | Dec 27, 2014 | Dec 28, 2013 | Dec 29, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 408,711,522 | 433,115,252 | 442,931,286 | 450,729,244 | 460,414,239 | |
| Selected Financial Data (US$) | ||||||
| Revenues (in millions) | 13,105) | 13,279) | 13,084) | 13,633) | 12,626) | |
| Sales per share2 | 32.06 | 30.66 | 29.54 | 30.25 | 27.42 | |
| Share price1, 3 | 69.52 | 76.05 | 73.24 | 64.56 | 65.50 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 2.17 | 2.48 | 2.48 | 2.13 | 2.39 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Airbnb Inc. | — | — | — | — | — | |
| Booking Holdings Inc. | — | — | — | — | — | |
| Chipotle Mexican Grill Inc. | — | — | — | — | — | |
| McDonald’s Corp. | — | — | — | — | — | |
| Starbucks Corp. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31).
1 Data adjusted for splits and stock dividends.
2 2015 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= 13,105,000,000 ÷ 408,711,522 = 32.06
3 Closing price as at the filing date of YUM! Brands Inc. Annual Report.
4 2015 Calculation
P/S ratio = Share price ÷ Sales per share
= 69.52 ÷ 32.06 = 2.17
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited modest fluctuations over the five-year period. Beginning at $65.50 in 2011, it experienced a slight decline in 2012 to $64.56, followed by a steady increase, peaking at $76.05 in 2014 before decreasing to $69.52 in 2015. Overall, the share price demonstrated some volatility but maintained a generally stable range with a moderate increase from the initial value.
- Sales Per Share Trend
- Sales per share showed consistent growth throughout the period. Starting at $27.42 in 2011, sales per share increased each year, reaching $32.06 by 2015. This steady upward trajectory suggests improving revenue generation on a per-share basis over the examined years.
- Price-to-Sales Ratio (P/S) Trend
- The P/S ratio started at 2.39 in 2011, dropped to 2.13 in 2012, then increased and stabilized at 2.48 in both 2013 and 2014 before declining to 2.17 in 2015. This movement indicates some variability in how the market valued each dollar of sales, with the ratio generally fluctuating within a narrow range and ending lower than its peak years.
- Overall Analysis
- The data reveal that sales per share consistently improved, reflecting positive operational performance. However, the share price did not fully mirror this growth, showing volatility and ending with less pronounced gains. The fluctuating P/S ratio suggests changing market sentiments or valuation considerations, which may have influenced the share price independent of sales growth.
Price to Book Value (P/BV)
YUM! Brands Inc., historical P/BV calculation, comparison to benchmarks
| Dec 26, 2015 | Dec 27, 2014 | Dec 28, 2013 | Dec 29, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 408,711,522 | 433,115,252 | 442,931,286 | 450,729,244 | 460,414,239 | |
| Selected Financial Data (US$) | ||||||
| Shareholders’ equity, YUM! Brands, Inc. (in millions) | 911) | 1,547) | 2,166) | 2,154) | 1,823) | |
| Book value per share (BVPS)2 | 2.23 | 3.57 | 4.89 | 4.78 | 3.96 | |
| Share price1, 3 | 69.52 | 76.05 | 73.24 | 64.56 | 65.50 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 31.19 | 21.29 | 14.98 | 13.51 | 16.54 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Airbnb Inc. | — | — | — | — | — | |
| Booking Holdings Inc. | — | — | — | — | — | |
| Chipotle Mexican Grill Inc. | — | — | — | — | — | |
| McDonald’s Corp. | — | — | — | — | — | |
| Starbucks Corp. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31).
1 Data adjusted for splits and stock dividends.
2 2015 Calculation
BVPS = Shareholders’ equity, YUM! Brands, Inc. ÷ No. shares of common stock outstanding
= 911,000,000 ÷ 408,711,522 = 2.23
3 Closing price as at the filing date of YUM! Brands Inc. Annual Report.
4 2015 Calculation
P/BV ratio = Share price ÷ BVPS
= 69.52 ÷ 2.23 = 31.19
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited moderate fluctuation over the observed periods. Initially, the price slightly declined from 65.5 US$ in 2011 to 64.56 US$ in 2012. Subsequently, it increased steadily, reaching a peak of 76.05 US$ in 2014 before experiencing a notable decline to 69.52 US$ in 2015.
- Book Value per Share (BVPS) Trend
- The book value per share showed a rise in the early years, increasing from 3.96 US$ in 2011 to 4.89 US$ in 2013. However, this upward trend reversed sharply thereafter, with BVPS dropping significantly to 3.57 US$ in 2014 and further declining to 2.23 US$ by 2015, indicating a deteriorating underlying equity value per share in the latter years.
- Price-to-Book Value (P/BV) Ratio Analysis
- The P/BV ratio demonstrated considerable volatility. It decreased from 16.54 in 2011 to 13.51 in 2012, reflecting a relatively more attractive valuation or improved book value at that time. Then, it gradually increased to 14.98 in 2013 before climbing sharply to 21.29 in 2014 and surging further to 31.19 in 2015. This sharp increase, despite the declining BVPS, suggests that the market price remained relatively high compared to the book value, possibly indicating elevated investor expectations or market optimism notwithstanding the weakening book fundamentals.
- Overall Insight
- The data indicates a divergence between market valuation and book value starting in 2014, with the share price remaining elevated relative to the substantial decline in BVPS, leading to a rapidly increasing P/BV ratio. This divergence may imply heightened market confidence or speculation, though it raises questions about the sustainability of market valuations in the face of deteriorating book equity per share.