Is Yum China Holdings, Inc. overvalued or undervalued?

As of 7 November 2025, Yum China Holdings, Inc. has moved from a very expensive to an expensive valuation grade. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 17, while the EV to EBITDA ratio is 8.51, and the PEG ratio is 1.02, indicating a premium compared to its earnings growth prospects.
In comparison to its peers, Yum! Brands, Inc. has a significantly higher P/E ratio of 28.45, while Darden Restaurants, Inc. shows a P/E of 23.58, both suggesting that Yum China is relatively more attractively priced within the context of its industry. However, the company's performance has lagged behind the S&P 500, with a year-to-date return of -9.51% compared to the S&P 500's 14.40%, highlighting ongoing challenges in its market performance.