Yum China Holdings (LTS:0M30) GF Value Rank : 8 (As of Apr. 29, 2024)

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What is Yum China Holdings GF Value Rank?

Yum China Holdings has the GF Value Rank of 8.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of Yum China Holdings's GF Value Rank

For the Restaurants subindustry, Yum China Holdings's GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Yum China Holdings's GF Value Rank Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Yum China Holdings's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Yum China Holdings's GF Value Rank falls into.

Yum China Holdings GF Value Rank Related Terms

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Yum China Holdings (LTS:0M30) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Yum China Holdings Inc (LTS:0M30) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

YUMC:USA 09987:Hong Kong 0YU:Germany

Address

20 Tian Yao Qiao Road, Yum China Building, Shanghai, CHN, 200030

Website

https://www.yumchina.com

With almost 13,000 units and USD 10 billion in systemwide sales in 2022, Yum China is the largest restaurant chain in China. It generates revenue through its own restaurants and franchise fees. Key concepts include KFC (9,094 units) and Pizza Hut (2,903), but the company's portfolio also includes other brands such as Little Sheep, East Dawning, Taco Bell, Huang Ji Huang, COFFii & Joy, and Lavazza (collectively representing about 950 units). Yum China is a trademark licensee of Yum Brands, paying 3% of total systemwide sales to the company it separated from in October 2016.

Yum China Holdings (LTS:0M30) Headlines

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