Texas Roadhouse Inc (TXRH) is slightly overvalued and Yum Brands Inc (YUM) is slightly overvalued.
Both trade above our estimate of their intrinsic value. YUM is the closer of the two: -8%, against -20% for TXRH.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.9% (average of 3 methods) values the shares at $138.80; the price of $166.12 is 20% above that value, and 77% of that value comes from beyond year five.
Leak Score 59/100 on 3 of 12 signals
Discounting its cash flows at 7.7% (average of 3 methods) values the shares at $129.33; the price of $139.71 is 8% above that value, and 81% of that value comes from beyond year five.
Leak Score 65/100 on 8 of 12 signals
| Metric | TXRH | YUM |
|---|---|---|
| Verdict | Slightly overvalued | Slightly overvalued |
| Price | $166.12 | $139.71 |
| Intrinsic value | $138.80 | $129.33 |
| Margin of safety | -20% | -8% |
| Leak Score | 59/100 (3/12) | 65/100 (8/12) |
| Market cap | $10.9B | $38.1B |
| Revenue growth, 5 years | 19.6% | 7.8% |
| Operating margin | 8.2% | 32.4% |
| Net margin | 6.6% | 25.4% |
| Return on equity | 27.5% | — |
| Debt to equity | 0.70 | — |
| P/E | 26.6x | 17.6x |
| Forward P/E | 21.3x | 19.3x |
| P/B | 7.0x | — |
| Dividend yield | 1.8% | 2.1% |