Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
YUM! Brands Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31).
| Item | Description | The company |
|---|---|---|
| EBITDA | To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. | YUM! Brands Inc. EBITDA decreased from 2013 to 2014 but then increased from 2014 to 2015 exceeding 2013 level. |
Enterprise Value to EBITDA Ratio, Current
YUM! Brands Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 35,686) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 2,689) |
| Valuation Ratio | |
| EV/EBITDA | 13.27 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Airbnb Inc. | 33.68 |
| Booking Holdings Inc. | 23.01 |
| Chipotle Mexican Grill Inc. | 40.32 |
| McDonald’s Corp. | 17.55 |
| Starbucks Corp. | 18.86 |
Based on: 10-K (reporting date: 2015-12-26).
1 Click competitor name to see calculations.
If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.
Enterprise Value to EBITDA Ratio, Historical
YUM! Brands Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 26, 2015 | Dec 27, 2014 | Dec 28, 2013 | Dec 29, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 31,712) | 35,761) | 34,919) | 31,364) | 32,369) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 2,689) | 2,318) | 2,542) | 2,959) | 2,471) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 11.79 | 15.43 | 13.74 | 10.60 | 13.10 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Airbnb Inc. | — | — | — | — | — | |
| Booking Holdings Inc. | — | — | — | — | — | |
| Chipotle Mexican Grill Inc. | — | — | — | — | — | |
| McDonald’s Corp. | — | — | — | — | — | |
| Starbucks Corp. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31).
3 2015 Calculation
EV/EBITDA = EV ÷ EBITDA
= 31,712 ÷ 2,689 = 11.79
4 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| EV/EBITDA | Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. | YUM! Brands Inc. EV/EBITDA ratio increased from 2013 to 2014 but then decreased significantly from 2014 to 2015. |