Using the industry peer median P/E multiple (trailing + forward), Yum! Brands, Inc. (YUM) has a fair value of $120.12 based on 6 comparable companies in the Restaurants industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Yum! Brands, Inc.YUM | 43,677 | 28.3x | 23.6x |
| Chipotle Mexican Grill, Inc.CMG | 42,703 | 28.3x | 28.3x |
| eBay Inc.EBAY | 40,355 | 20.6x | 14.7x |
| D.R. Horton, Inc.DHI | 39,870 | 11.8x | 9.4x |
| Las Vegas Sands Corp.LVS | 35,355 | 22.3x | 22.5x |
| Carnival Corporation & plcCCL | 35,155 | 12.6x | 10.3x |
| Copart, Inc.CPRT | 32,075 | 20.8x | 23.0x |
| Industry Median | 20.7x | 18.6x | |
| (*) Profit after tax | 1,559 | 1,854 | |
| Equity Value | 32,280 | 34,506 | |
| (/) Outstanding shares | 278 | 278 | |
| Fair Price | $116 | $124 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.