Stock Analysis on Net

YUM! Brands Inc. (NYSE:YUM)

This company has been moved to the archive! The financial data has not been updated since October 11, 2016.

Enterprise Value to FCFF (EV/FCFF)

Microsoft Excel

Free Cash Flow to The Firm (FCFF)

YUM! Brands Inc., FCFF calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 26, 2015 Dec 27, 2014 Dec 28, 2013 Dec 29, 2012 Dec 31, 2011
Net income, YUM! Brands, Inc. 1,293 1,051 1,091 1,597 1,319
Net (income) loss, noncontrolling interests 5 (30) (27) 11 16
Net noncash charges 711 1,164 1,178 574 721
Changes in operating capital 130 (136) (103) 112 114
Net cash provided by operating activities 2,139 2,049 2,139 2,294 2,170
Cash paid for interest, net of tax1 112 107 185 125 160
Capital spending (973) (1,033) (1,049) (1,099) (940)
Capital lease obligations incurred (28) (24) (15) (17) (58)
Free cash flow to the firm (FCFF) 1,250 1,099 1,260 1,303 1,332

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

YUM! Brands Inc., interest paid, net of tax calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 26, 2015 Dec 27, 2014 Dec 28, 2013 Dec 29, 2012 Dec 31, 2011
Effective Income Tax Rate (EITR)
EITR1 27.30% 28.50% 31.40% 25.00% 19.50%
Interest Paid, Net of Tax
Cash paid for interest, before tax 154 149 269 166 199
Less: Cash paid for interest, tax2 42 42 84 42 39
Cash paid for interest, net of tax 112 107 185 125 160

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).

1 See details »

2 2015 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 154 × 27.30% = 42


Enterprise Value to FCFF Ratio, Current

YUM! Brands Inc., current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
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

YUM! Brands Inc., historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
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).

1 See details »

2 See details »

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.