Free Cash Flow to The Firm (FCFF)
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 |
---|---|---|
FCFF | Free cash flow to the firm is the cash flow available to the YUM! Brands Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. | YUM! Brands Inc. FCFF decreased from 2013 to 2014 but then increased from 2014 to 2015 not reaching 2013 level. |
Interest Paid, Net of Tax
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).
2 2015 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 154 × 27.30% = 42
Enterprise Value to FCFF Ratio, Current
Selected Financial Data (US$ in millions) | |
Enterprise value (EV) | 35,686) |
Free cash flow to the firm (FCFF) | 1,250) |
Valuation Ratio | |
EV/FCFF | 28.55 |
Benchmarks | |
EV/FCFF, Competitors1 | |
Airbnb Inc. | 21.22 |
Booking Holdings Inc. | 21.82 |
Chipotle Mexican Grill Inc. | — |
McDonald’s Corp. | 29.78 |
Starbucks Corp. | 29.52 |
Based on: 10-K (reporting date: 2015-12-26).
1 Click competitor name to see calculations.
If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.
Enterprise Value to FCFF Ratio, Historical
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) | |
Free cash flow to the firm (FCFF)2 | 1,250) | 1,099) | 1,260) | 1,303) | 1,332) | |
Valuation Ratio | ||||||
EV/FCFF3 | 25.37 | 32.55 | 27.72 | 24.08 | 24.30 | |
Benchmarks | ||||||
EV/FCFF, 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/FCFF = EV ÷ FCFF
= 31,712 ÷ 1,250 = 25.37
4 Click competitor name to see calculations.
Valuation ratio | Description | The company |
---|---|---|
EV/FCFF | Enterprise value to free cash flow to the firm is whole company valuation indicator. | YUM! Brands Inc. EV/FCFF ratio increased from 2013 to 2014 but then decreased significantly from 2014 to 2015. |