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Is this Large Market Cap Stock target price reasonable for Yum! Brands, Inc. (NYSE:YUM)?

The company in question is, Yum! Brands, Inc. (NYSE:YUM) currently with a stock price of 89.94 (0.21% today). The market cap for Yum! Brands, Inc. is 35636.03, and is in the sector Services, and Restaurants industry. The target price for Yum! Brands, Inc. is 92.81. Currently Yum! Brands, Inc. is trading with a P/E of 27.1, and a forward P/E of 21.53. Average volume for Yum! Brands, Inc. is 2877.84 and so far today it is 2439100.

Performance in the last year for Yum! Brands, Inc. has been 15.64%. For EPS growth, Yum! Brands, Inc. has seen a growth of 25.80%, and is looking to grow in the next year to 13.07%. More long term stats show that EPS growth has been 4.10% over the last five years and could be 12.18% for the next five years. Yum! Brands, Inc. has seen sales growth quarter over quarter at -3.10%, with EPS growth quarter over quarter at 53.90%. The 20-day simple moving average is 3.58%, with the 200-day simple moving average coming to 15.31%.

Since the IPO date for Yum! Brands, Inc. on the 9/17/1997, Yum! Brands, Inc. has seen performance year to date to be 25.31%. With Yum! Brands, Inc. trading at 89.94, the dividend yield is 2.05%, and the EPS is 3.32.

So could Yum! Brands, Inc., be undervalued? Well as said before P/E is 27.1. The PEG is 2.23, P/S is 2.74 and the P/B is at *TBA. The P/cash is *TBA, with P/free cash flow at 84.45.

Yum! Brands, Inc. ability to deal with debt shows that the current ratio is 0.8, and the quick ratio is 0.7. This is with long term debt/equity at *TBA, and total debt/equity at *TBA.

In terms of margins, Yum! Brands, Inc. has a gross margin of 54.60%, an operating margin of 16.10% and a profit margin of 11.00%.Payout ratio for Yum! Brands, Inc. is 54.60%. Return on assets come to 17.40% with return on investment coming to 29.40%.

Insider ownership for Yum! Brands, Inc., is at 0.10% and institutional ownership comes to 79.90%. Outstanding shares are at 396.22. While shares float is 388.73. The float short is currently 1.62%, and short ratio is 2.18.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Peter Clarke

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