Enterprise Value to FCFF (EV/FCFF)
Paying user area
Try for free
YUM! Brands Inc. pages available for free this week:
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to YUM! Brands Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Free Cash Flow to The Firm (FCFF)
YUM! Brands Inc., FCFF calculation
US$ 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).
The financial data over the five-year period indicates relatively stable operating cash flow with slight fluctuations. The net cash provided by operating activities shows a moderate increase from 2011 to 2012, rising from 2,170 million USD to 2,294 million USD. However, this is followed by a gradual decline in the subsequent years, reaching a low of 2,049 million USD in 2014 before partially recovering to 2,139 million USD in 2015.
Free cash flow to the firm (FCFF) demonstrates a declining trend throughout most of the period. Starting at 1,332 million USD in 2011, FCFF decreases each year until it hits a low of 1,099 million USD in 2014. There is a slight rebound in 2015, with FCFF increasing to 1,250 million USD, though it remains below the initial level in 2011.
Overall, the data suggests that while the company maintained a generally solid cash flow from operations, there were some pressures that led to a decrease in free cash flow over the years. The decline in FCFF may point to increased capital expenditures, changes in working capital requirements, or other factors impacting the firm's cash generation available after operating expenses. The modest recovery in 2015 could imply efforts to improve cash efficiency or a reduction in capital spending.
- Net Cash Provided by Operating Activities
- Displayed a slight upward movement initially, followed by a gradual decrease and a mild recovery at the end of the period. This denotes relatively consistent operating performance with some volatility.
- Free Cash Flow to the Firm (FCFF)
- Exhibited a declining trend over the five years, suggesting rising cash demands or reduced cash inflows post-operating costs. The rebound in 2015 hints at potential operational or financial adjustments.
Interest Paid, Net of Tax
YUM! Brands Inc., interest paid, net of tax 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).
2 2015 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= × =
- Effective Income Tax Rate (EITR)
- The effective income tax rate showed an increasing trend from 19.5% in 2011 to a peak of 31.4% in 2013. After reaching this high point, the rate declined somewhat, falling to 28.5% in 2014 and further to 27.3% in 2015, indicating some volatility but an overall upward movement from the starting point. This pattern suggests that the company's tax burden increased significantly between 2011 and 2013 before moderating slightly in the subsequent years.
- Cash Paid for Interest, Net of Tax
- The cash paid for interest, net of tax, demonstrated fluctuations over the five-year period. Starting at $160 million in 2011, the amount decreased to $125 million in 2012, followed by a substantial increase to $185 million in 2013. Subsequently, the cash paid for interest dropped sharply to $107 million in 2014 before a minor increase to $112 million in 2015. This variability may reflect changes in debt levels, interest rates, or refinancing activities during this time frame.
- Overall Observations
- Both the effective income tax rate and interest payments exhibited notable variation over the five-year period. The tax rate increased overall, with a peak in 2013, while interest payments showed a less consistent pattern with a peak in 2013 and lower figures in the surrounding years. These dynamics could have material implications for the company's net income and financing costs, pointing to potential shifts in financial strategy or external economic conditions impacting tax and interest expenses.
Enterprise Value to FCFF Ratio, Current
YUM! Brands Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Valuation Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Airbnb Inc. | |
| Booking Holdings Inc. | |
| Chipotle Mexican Grill Inc. | |
| McDonald’s Corp. | |
| Starbucks Corp. | |
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
YUM! Brands Inc., historical EV/FCFF 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 | ||||||
| Free cash flow to the firm (FCFF)2 | ||||||
| Valuation Ratio | ||||||
| EV/FCFF3 | ||||||
| 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
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value
- The enterprise value exhibited some fluctuations over the five-year period. It started at approximately $32.4 billion in 2011, decreased slightly to about $31.4 billion in 2012, then rose to a peak of $35 billion in 2013 and further to around $35.8 billion in 2014. By 2015, it declined noticeably to approximately $31.7 billion. This pattern suggests a period of growth until 2014, followed by a significant reduction in valuation the subsequent year.
- Free Cash Flow to the Firm (FCFF)
- Free cash flow to the firm showed a generally decreasing trend from 2011 through 2014, declining from $1.33 billion to roughly $1.1 billion. However, in 2015, there was a rebound to $1.25 billion, indicating some recovery in operational cash generation capacity after a period of decline.
- EV/FCFF Ratio
- The EV/FCFF ratio reflected the combined movements of enterprise value and free cash flow. The ratio remained relatively stable around 24 in 2011 and 2012, increased significantly to about 27.7 in 2013 and reached its highest level at 32.55 in 2014, indicating that enterprise value was growing at a faster rate than free cash flow during those years. In 2015, the ratio declined notably to around 25.4, consistent with the decrease in enterprise value and the partial recovery in free cash flow. This fluctuation suggests varying market perceptions of the firm's value relative to its cash flow generation over time.