Is Yum! Brands, Inc. overvalued or undervalued?

As of 13 July 2016, Yum! Brands, Inc. has moved from a very attractive valuation grade to a risky one. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 28, which is significantly higher than peers like McDonald's Corp. at 53.45 and Starbucks Corp. at 32.27. Additionally, the EV to EBITDA ratio for Yum! is 19.59, compared to McDonald's at 36.99, indicating that while it may seem competitive, the overall valuation is still concerning given the higher ratios of its peers.
The Price to Book Value is notably negative at -5.16, which raises red flags about its asset management and overall financial health. With a ROCE of 87.95%, Yum! Brands shows strong returns on capital, but this is overshadowed by the negative book value and the high P/E ratio. The recent stock performance has lagged behind the S&P 500, with a 1-year return of 5.29% compared to the index's 10.26%, reinforcing the notion that the stock is currently overvalued.