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Yum China Holdings Inc
NYSE:YUMC

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Yum China Holdings Inc
NYSE:YUMC
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Price: 48.8 USD 0.72% Market Closed
Market Cap: $17.2B

EV/IC

2.5
Current
2%
More Expensive
vs 3-y average of 2.4

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
2.5
=
Enterprise Value
$15.8B
/
Invested Capital
$6.5B

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
2.5
=
Enterprise Value
$15.8B
/
Invested Capital
$6.5B

Valuation Scenarios

Yum China Holdings Inc is trading above its 3-year average

If EV/IC returns to its 3-Year Average (2.4), the stock would be worth $47.92 (2% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-28%
Maximum Upside
No Upside Scenarios
Average Downside
13%
Scenario EV/IC Value Implied Price Upside/Downside
Current Multiple 2.5 $48.8
0%
3-Year Average 2.4 $47.92
-2%
5-Year Average 2.4 $47.92
-2%
Industry Average 1.8 $34.93
-28%
Country Average 1.9 $38.21
-22%

Forward EV/IC
Today’s price vs future invested capital

Not enough data available to calculate forward EV/IC

Peer Comparison

All Multiples
EV/IC
P/E
All Countries
Close

Market Distribution

In line with most companies in China
Percentile
59th
Based on 7 566 companies
59th percentile
2.5
Low
0 — 1.1
Typical Range
1.1 — 3.4
High
3.4 —
Distribution Statistics
China
Min 0
30th Percentile 1.1
Median 1.9
70th Percentile 3.4
Max 1 129 391.6

Yum China Holdings Inc
Glance View

Yum China Holdings Inc., born from the split of its parent company Yum! Brands in 2016, quickly became a formidable player in the world of fast food in China, a land known for its dining diversity and explosive economic growth. This savvy spin-off managed a unique alchemy, blending Western brands with the local palate through household names like KFC and Pizza Hut. As the vast and varied Chinese market opened its doors wider, Yum China strategically expanded its reach across bustling cities and burgeoning towns. With every crispy chicken leg and cheesy slice, they began grasping the nuances of local tastes and dining habits, going beyond mere adaptation and evolving into an integral part of China's food culture. Central to Yum China's business model is its ability to merge the robust efficiency of a global fast-food chain with a locally attuned approach to business. They generate revenue through a sprawling network of company-owned and franchised stores, leveraging their presence in high-traffic locations. With a keen focus on digital innovation, Yum China has embraced cutting-edge technology to refine its customer engagement, from mobile ordering to specialized dietary options. Their prosperity isn't just based on serving food; it's about creating a seamless, delightful dining experience tailored to the ever-evolving expectations of Chinese consumers. In the process, Yum China capitalizes on cost efficiencies and scale, reinforcing its standing as a significant player in the competitive landscape of quick-service restaurants.

YUMC Intrinsic Value
51.91 USD
Undervaluation 6%
Intrinsic Value
Price $48.8
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