Is Yum China Holdings, Inc. overvalued or undervalued?

As of 7 November 2025, the valuation grade for Yum China Holdings, Inc. has moved from very expensive to expensive. 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 that the stock may not be justified at its current price given its earnings growth prospects.
In comparison to 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 cheaper but still in the expensive category. Notably, Yum China's recent stock performance has lagged behind the S&P 500, with a YTD return of -7.02% compared to the S&P 500's 14.40%, reinforcing the notion that the stock may not be a compelling investment at this time.