DCF Tool

YUM

Yum Brands Inc. – Limited-Service Restaurants
yum! brands isn’t your average fortune 250 company. we like to do things a little differently. from our world-famous culture of fun and recognition to our focus on your career potential, yum! puts a unique stamp on day-to-day business. as the world’s largest restaurant company, yum! brands, inc. has over 39,000 restaurants in more than 130 countries and territories and more than 1 million associates worldwide. the company's brands - kfc, pizza hut and taco bell– are the global leaders of the chicken, pizza and mexican-style food categories. what makes yum! a great place to work? it's our people. that's why we invest in people capability so they can make the most of their career. with a diverse workforce and ongoing opportunities for personal and professional success, we've built a culture that rewards and recognizes great effort while providing the work/life balance that is so important to all of us. around the globe, we bring people together to have fun and to celebrate special oc
Analysis Results
Intrinsic Value $175.95
Latest Price $125.00
Relative Value 29% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 5.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 5.9%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 1.97 1.85
2024 2.09 1.85
2025 2.21 1.84
2026 2.34 1.83
2027 2.48 1.82
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 58.1 billion. This corresponds to a present value of 40.1 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 9.19 billion. Adding in the terminal value gives a total present value of 49.3 billion.

There are presently 280.0 million outstanding shares, so the intrinsic value per share is 175.95.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,609,000,000
Current Cash 367,000,000
Current Liabilities 1,665,000,000
Current Debt 398,000,000
Non-Cash Working Capital (NCWC) -25,000,000
Change in NCWC 276,000,000
EBIT 2,167,000,000
Tax Provision 337,000,000
Depreciation and Amortization 146,000,000
Capital Expenditure -279,000,000
Unlevered Free Cash Flow 1,870,602,286
Current Assets 1,532,000,000
Current Cash 486,000,000
Current Liabilities 1,415,000,000
Current Debt 68,000,000
Non-Cash Working Capital (NCWC) -301,000,000
Change in NCWC -38,000,000
EBIT 2,106,000,000
Tax Provision 99,000,000
Depreciation and Amortization 164,000,000
Capital Expenditure -230,000,000
Unlevered Free Cash Flow 1,877,451,612
Current Assets 1,689,000,000
Current Cash 730,000,000
Current Liabilities 1,675,000,000
Current Debt 453,000,000
Non-Cash Working Capital (NCWC) -263,000,000
Change in NCWC -75,000,000
EBIT 1,623,000,000
Tax Provision 116,000,000
Depreciation and Amortization 146,000,000
Capital Expenditure -160,000,000
Unlevered Free Cash Flow 1,349,423,529
Current Assets 1,527,000,000
Current Cash 605,000,000
Current Liabilities 1,541,000,000
Current Debt 431,000,000
Non-Cash Working Capital (NCWC) -188,000,000
Change in NCWC -123,000,000
EBIT 1,897,000,000
Tax Provision 79,000,000
Depreciation and Amortization 112,000,000
Capital Expenditure -196,000,000
Unlevered Free Cash Flow 1,580,849,963
Current Assets 1,207,000,000
Current Cash 292,000,000
Current Liabilities 1,301,000,000
Current Debt 321,000,000
Non-Cash Working Capital (NCWC) -65,000,000
Change in NCWC 87,000,000
EBIT 1,763,000,000
Tax Provision 297,000,000
Depreciation and Amortization 137,000,000
Capital Expenditure -234,000,000
Unlevered Free Cash Flow 1,468,274,061
Current Assets 2,507,000,000
Current Cash 1,522,000,000
Current Liabilities 1,512,000,000
Current Debt 375,000,000
Non-Cash Working Capital (NCWC) -152,000,000
Change in NCWC 373,000,000
EBIT 1,688,000,000
Tax Provision 934,000,000
Depreciation and Amortization 253,000,000
Capital Expenditure -318,000,000
Unlevered Free Cash Flow 1,302,687,774
Current Assets 1,482,000,000
Current Cash 704,000,000
Current Liabilities 1,369,000,000
Current Debt 66,000,000
Non-Cash Working Capital (NCWC) -525,000,000
Change in NCWC 689,000,000
EBIT 1,505,000,000
Tax Provision 324,000,000
Depreciation and Amortization 309,000,000
Capital Expenditure -422,000,000
Unlevered Free Cash Flow 1,711,030,349
Current Assets 1,688,000,000
Current Cash 737,000,000
Current Liabilities 3,088,000,000
Current Debt 923,000,000
Non-Cash Working Capital (NCWC) -1,214,000,000
Change in NCWC -138,000,000
EBIT 2,041,000,000
Tax Provision 489,000,000
Depreciation and Amortization 747,000,000
Capital Expenditure -973,000,000
Unlevered Free Cash Flow 1,118,494,683
Current Assets 1,646,000,000
Current Cash 578,000,000
Current Liabilities 2,411,000,000
Current Debt 267,000,000
Non-Cash Working Capital (NCWC) -1,076,000,000
Change in NCWC 0
EBIT 2,081,000,000
Tax Provision 406,000,000
Depreciation and Amortization 739,000,000
Capital Expenditure -1,033,000,000
Unlevered Free Cash Flow 1,194,928,521
Current Assets 1,691,000,000
Current Cash 573,000,000
Current Liabilities 2,265,000,000
Current Debt 71,000,000
Non-Cash Working Capital (NCWC) -1,076,000,000
Change in NCWC -31,000,000
EBIT 2,039,000,000
Tax Provision 487,000,000
Depreciation and Amortization 721,000,000
Capital Expenditure -1,049,000,000
Unlevered Free Cash Flow 1,039,772,404
Current Assets 1,909,000,000
Current Cash 776,000,000
Current Liabilities 2,188,000,000
Current Debt 10,000,000
Non-Cash Working Capital (NCWC) -1,045,000,000
Change in NCWC -38,000,000
EBIT 2,185,000,000
Tax Provision 537,000,000
Depreciation and Amortization 645,000,000
Capital Expenditure -1,099,000,000
Unlevered Free Cash Flow 1,145,986,013

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.