Is Yum China Holdings, Inc. overvalued or undervalued?

As of 17 October 2025, Yum China Holdings, Inc. has moved from fair to expensive in its valuation grade. The company appears to be overvalued based on its current metrics, with a P/E ratio of 17, a Price to Book Value of 2.93, and an EV to EBITDA of 8.51. In comparison, Yum! Brands, Inc. has a higher P/E of 28.45, indicating a more expensive valuation, while Darden Restaurants, Inc. also shows an expensive valuation with a P/E of 23.58.
Recent stock performance reveals that Yum China has underperformed against the S&P 500 across multiple time frames, with a year-to-date return of -9.03% compared to the S&P 500's 13.30%. This trend reinforces the notion that Yum China is currently overvalued in the market.