Latest Ratios: P/E Ratio 17.1x · EV/EBITDA 9.4x · ROE 14.8%. (2014–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $17.4B | $17.1B | $18.8B | $17.8B | $23.2B | $21.6B | $23.0B | $18.6B | $13.2B | $15.9B | $9.6B |
| Enterprise Value | $19.3B | $19.0B | $20.5B | $19.2B | $24.5B | $23.3B | $24.2B | $19.8B | $12.0B | $14.9B | $8.8B |
| P/E Ratio → | 17.06 | 19.10 | 20.59 | 21.54 | 52.55 | 21.86 | 29.28 | 26.09 | 18.73 | 40.02 | 19.21 |
| P/S Ratio | 1.37 | 1.45 | 1.66 | 1.62 | 2.43 | 2.20 | 2.78 | 2.12 | 1.57 | 2.05 | 1.43 |
| P/B Ratio | 2.94 | 2.81 | 2.92 | 2.50 | 3.24 | 2.73 | 3.55 | 5.87 | 4.45 | 5.59 | 3.95 |
| P/FCF | 18.28 | 20.40 | 26.31 | 23.36 | 31.64 | 48.94 | 33.02 | 24.84 | 15.35 | 33.96 | 22.42 |
| P/OCF | 11.90 | 11.69 | 13.24 | 12.10 | 16.44 | 19.13 | 20.60 | 15.72 | 9.94 | 18.02 | 11.13 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.61 | 1.81 | 1.75 | 2.56 | 2.37 | 2.93 | 2.26 | 1.43 | 1.92 | 1.30 |
| EV / EBITDA | 9.45 | 9.96 | 12.50 | 12.33 | 19.90 | 12.27 | 17.14 | 14.89 | 8.66 | 12.55 | 8.48 |
| EV / EBIT | 13.22 | 13.82 | 17.06 | 16.97 | 37.23 | 31.78 | 34.11 | 22.93 | 14.46 | 19.58 | 13.47 |
| EV / FCF | — | 22.59 | 28.67 | 25.20 | 33.37 | 52.78 | 34.80 | 26.39 | 13.91 | 31.76 | 20.43 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 17.3% | 17.3% | 16.7% | 17.2% | 14.9% | 14.3% | 15.3% | 20.6% | 15.6% | 16.5% | 16.2% |
| Operating Margin | 12.4% | 12.4% | 10.3% | 10.1% | 6.6% | 14.1% | 11.6% | 10.3% | 11.2% | 10.0% | 9.4% |
| Net Profit Margin | 7.9% | 7.9% | 8.1% | 7.5% | 4.6% | 10.0% | 9.5% | 8.1% | 8.4% | 5.1% | 7.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 14.8% | 14.8% | 13.5% | 11.6% | 5.9% | 13.8% | 16.3% | 23.2% | 24.3% | 15.0% | 22.7% |
| ROA | 8.5% | 8.5% | 7.9% | 6.9% | 3.5% | 8.2% | 8.8% | 12.3% | 15.9% | 9.9% | 14.5% |
| ROIC | 13.6% | 13.6% | 10.5% | 9.8% | 5.2% | 12.0% | 12.0% | 22.2% | 39.7% | 34.3% | 29.9% |
| ROCE | 16.8% | 16.8% | 12.6% | 11.5% | 6.1% | 14.1% | 13.7% | 21.0% | 28.4% | 26.0% | 25.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.38 | 0.38 | 0.37 | 0.36 | 0.33 | 0.36 | 0.37 | 0.70 | 0.01 | 0.01 | 0.01 |
| Debt / EBITDA | 1.23 | 1.23 | 1.47 | 1.63 | 1.95 | 1.49 | 1.69 | 1.66 | 0.02 | 0.02 | 0.03 |
| Net Debt / Equity | — | 0.30 | 0.26 | 0.20 | 0.18 | 0.21 | 0.19 | 0.37 | -0.42 | -0.36 | -0.35 |
| Net Debt / EBITDA | 0.96 | 0.96 | 1.03 | 0.90 | 1.03 | 0.89 | 0.87 | 0.88 | -0.90 | -0.87 | -0.83 |
| Debt / FCF | — | 2.19 | 2.36 | 1.85 | 1.73 | 3.84 | 1.77 | 1.55 | -1.44 | -2.20 | -1.99 |
| Interest Coverage | — | — | — | — | — | — | — | — | — | — | — |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.05 | 1.05 | 1.18 | 1.42 | 1.82 | 1.98 | 2.39 | 1.30 | 1.56 | 1.76 | 1.42 |
| Quick Ratio | 0.85 | 0.85 | 1.00 | 1.24 | 1.63 | 1.80 | 2.20 | 1.08 | 1.31 | 1.47 | 1.15 |
| Cash Ratio | 0.62 | 0.62 | 0.81 | 1.07 | 1.46 | 1.68 | 2.06 | 0.95 | 1.11 | 1.23 | 0.96 |
| Asset Turnover | — | 1.09 | 1.02 | 0.91 | 0.81 | 0.75 | 0.76 | 1.26 | 1.83 | 1.81 | 1.81 |
| Inventory Turnover | 22.28 | 22.28 | 23.24 | 21.45 | 19.53 | 19.55 | 17.58 | 18.33 | 23.13 | 21.84 | 21.20 |
| Days Sales Outstanding | — | 12.65 | 10.20 | 9.41 | 8.05 | 4.15 | 6.89 | 5.70 | 6.46 | 6.58 | 4.87 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.0% | 2.1% | 1.3% | 1.2% | 0.9% | 0.9% | 0.4% | 1.0% | 1.2% | 0.2% | — |
| Payout Ratio | 38.0% | 38.0% | 27.2% | 26.1% | 45.7% | 20.5% | 12.1% | 25.4% | 22.7% | 9.5% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.9% | 5.2% | 4.9% | 4.6% | 1.9% | 4.6% | 3.4% | 3.8% | 5.3% | 2.5% | 5.2% |
| FCF Yield | 5.5% | 4.9% | 3.8% | 4.3% | 3.2% | 2.0% | 3.0% | 4.0% | 6.5% | 2.9% | 4.5% |
| Buyback Yield | 6.6% | 6.7% | 6.6% | 3.4% | 2.0% | 0.3% | 0.0% | 1.4% | 2.3% | 0.8% | 0.0% |
| Total Shareholder Yield | 8.5% | 8.7% | 8.0% | 4.7% | 2.9% | 1.3% | 0.4% | 2.4% | 3.5% | 1.0% | 0.0% |
| Shares Outstanding | — | $359M | $390M | $420M | $425M | $434M | $402M | $388M | $395M | $398M | $369M |
Includes 30+ ratios · 12 years · Updated daily
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Quick answers to the most common questions about buying YUMC stock.
Yum China Holdings, Inc.'s current P/E ratio is 17.1x. The historical average is 26.9x.
Yum China Holdings, Inc.'s current EV/EBITDA is 9.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.9x.
Yum China Holdings, Inc.'s return on equity (ROE) is 14.8%. The historical average is 14.7%.
Based on historical data, Yum China Holdings, Inc. is trading at a P/E of 17.1x. Compare with industry peers and growth rates for a complete picture.
Yum China Holdings, Inc.'s current dividend yield is 1.97% with a payout ratio of 38.0%.
Yum China Holdings, Inc. has 17.3% gross margin and 12.4% operating margin. Operating margin between 10-20% is typical for established companies.
Yum China Holdings, Inc.'s Debt/EBITDA ratio is 1.2x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Domestic price competition pressure
Metrics are mathematically derived from official filings.
Discounted Multiples Reflect China Risk
Based on reported figures, YUMC trades at 19.91x trailing earnings and 10.08x EV/EBITDA, a discount to McDonald's 23.27x and 17.29x respectively, suggesting the market prices in a persistent geographic risk premium.
The forward P/E of 16.87 implies modest expected earnings growth, while the PEG of 3.91 signals that the market is not paying for growth at a rate consistent with the reported trailing earnings trajectory. The P/FCF of 20.69 is more reasonable than the earnings multiples, suggesting cash generation is being valued at a level closer to the broader restaurant group. Investors should weigh whether this discount is a durable China-specific adjustment or a temporary dislocation tied to recent margin volatility.
Margin Recovery Remains Cyclically Fragile
As reported in quarterly statements, YUMC's operating margin recovered to 13.0% in 2026Q3 from a 5.8% trough in 2024Q4, yet remains below the 14.6% peak reached in 2026Q1.
The gross margin band of 13.7% to 19.2% over ten quarters indicates that pricing and food-cost swings drive most of the earnings variability rather than a steady structural improvement. Operating margin expansion has outpaced gross margin in several periods, which suggests cost discipline on labor and rent is contributing meaningfully. However, the sustainability of this recovery depends on whether value-meal price competition from domestic rivals continues to cap pricing power.
Returns Oscillate Without Clear Compounding
According to the reported ratio series, YUMC's ROIC ranged from 1.4% to 4.5% over the last ten quarters, with the most recent reading of 4.0% well below the 48.1% ROIC shown for Yum! Brands.
The low ROIC relative to the peer group is consistent with a capital-intensive store footprint of over 12,000 locations, where new units dilute returns until they mature. The ROE of 5.1% in 2026Q3 is supported more by leverage than by operating returns, given the rise in debt-to-equity from 0.34 to 0.54 over the period. Returns therefore appear to be oscillating around a low base rather than clearly compounding, which warrants close monitoring of new-store cohort economics.
Debt Service Tightening From Low Base
Based on reported figures, YUMC's debt-to-EBITDA rose to 5.78 in 2026Q3 from 3.89 in 2026Q1, while interest coverage data is unavailable in the supplied series.
The move in debt-to-equity from 0.38 to 0.54 across recent quarters suggests leverage is increasing as asset growth is funded more by liabilities than by equity. The debt-to-EBITDA reading near 5.8x in the latest quarter, though volatile, indicates debt service capacity has narrowed relative to earnings. Because interest coverage is not reported in the data, the adequacy of debt service cannot be fully confirmed and should be verified against the filings.
Current Ratio Compression Toward One
As reported in financial statements, YUMC's current ratio fell from 1.39 in 2025Q2 to 0.67 in 2026Q3, while the quick ratio declined from 1.22 to 0.55 over the same span.
A current ratio below one, combined with a quick ratio of 0.55, suggests short-term obligations now exceed liquid assets, which may reflect timing effects from deferred revenue and payables rather than a structural shortfall. The negative cash conversion cycle of -31 days is a positive offset, as suppliers are effectively financing operations. Under a severe demand shock, the reliance on supplier credit would become a meaningful vulnerability if payment terms tightened.
Misapplied Metric: Restaurant Gross Margin
Gross margin is most commonly misapplied to YUMC because it blends company-owned and franchise economics, obscuring the true unit-level profitability that drives the store-expansion thesis.
Because gross margin in the reported series ranges from 13.7% to 19.2%, it can move with the company-owned versus franchised revenue mix rather than with underlying store performance. Restaurant-level margin, excluding corporate G&A and franchise fees, offers a cleaner read on whether new small-format stores deliver the lower break-even the strategy assumes. Investors should therefore track restaurant-level margin by store cohort rather than relying on consolidated gross margin.