Is Yum China Holdings, Inc. overvalued or undervalued?

As of 30 April 2025, Yum China Holdings, Inc. has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued. Key ratios include a P/E ratio of 17, a Price to Book Value of 2.93, and an EV to EBITDA of 8.51. In comparison to peers, Darden Restaurants, Inc. has a P/E of 24.86, while Domino's Pizza, Inc. stands at 28.24, indicating that Yum China is trading at a lower valuation relative to these competitors.
Despite a recent stock return of 36.31% over the past year, which outperformed the S&P 500's return of 10.26%, the overall valuation metrics suggest that Yum China is not positioned favorably in the market. The PEG ratio of 1.02 further supports the notion that the stock may be overvalued, especially when considering the higher valuations of its peers.