Discounted Cash Flow (DCF) Analysis Levered
Yum! Brands, Inc. (YUM)
$128.88
+2.03 (+1.60%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 5,688 | 5,597 | 5,652 | 6,584 | 6,842 | 7,180.53 | 7,535.80 | 7,908.66 | 8,299.96 | 8,710.63 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 1,176 | 1,315 | 1,305 | 1,706 | 1,427 | 1,637.54 | 1,718.57 | 1,803.60 | 1,892.84 | 1,986.49 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -234 | -196 | -160 | -230 | -279 | -258.75 | -271.56 | -284.99 | -299.09 | -313.89 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 942 | 1,119 | 1,145 | 1,476 | 1,148 | 1,378.79 | 1,447.01 | 1,518.61 | 1,593.74 | 1,672.60 |
Weighted Average Cost Of Capital
| Share price | $ 128.88 |
|---|---|
| Beta | 0.984 |
| Diluted Shares Outstanding | 302 |
| Cost of Debt | |
| Tax Rate | 20.28 |
| After-tax Cost of Debt | 3.55% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.123 |
| Total Debt | 11,851 |
| Total Equity | 38,921.76 |
| Total Capital | 50,772.76 |
| Debt Weighting | 23.34 |
| Equity Weighting | 76.66 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 5,688 | 5,597 | 5,652 | 6,584 | 6,842 | 7,180.53 | 7,535.80 | 7,908.66 | 8,299.96 | 8,710.63 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 1,176 | 1,315 | 1,305 | 1,706 | 1,427 | 1,637.54 | 1,718.57 | 1,803.60 | 1,892.84 | 1,986.49 |
| Capital Expenditure | -234 | -196 | -160 | -230 | -279 | -258.75 | -271.56 | -284.99 | -299.09 | -313.89 |
| Free Cash Flow | 942 | 1,119 | 1,145 | 1,476 | 1,148 | 1,378.79 | 1,447.01 | 1,518.61 | 1,593.74 | 1,672.60 |
| WACC | ||||||||||
| PV LFCF | 1,287.87 | 1,262.46 | 1,237.55 | 1,213.14 | 1,189.20 | |||||
| SUM PV LFCF | 6,190.22 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.06 |
| Free cash flow (t + 1) | 1,706.05 |
| Terminal Value | 33,716.41 |
| Present Value of Terminal Value | 23,972.04 |
Intrinsic Value
| Enterprise Value | 30,162.26 |
|---|---|
| Net Debt | 11,484 |
| Equity Value | 18,678.26 |
| Shares Outstanding | 302 |
| Equity Value Per Share | 61.85 |