Discounted Cash Flow (DCF) Analysis Levered

Yum! Brands, Inc. (YUM)

$124.08

+2.10 (+1.72%)
All numbers are in Millions, Currency in USD
Stock DCF: 46.46 | 124.08 | overvalue

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 5,6885,5975,6526,5846,8427,180.537,535.807,908.668,299.968,710.63
Revenue (%)
Operating Cash Flow 1,1761,3151,3051,7061,4271,637.541,718.571,803.601,892.841,986.49
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 9421,1191,1451,4761,1481,378.791,447.011,518.611,593.741,672.60

Weighted Average Cost Of Capital

Share price $ 124.08
Beta 1.010
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 9.366
Total Debt 11,851
Total Equity 37,472.16
Total Capital 49,323.16
Debt Weighting 24.03
Equity Weighting 75.97
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 5,6885,5975,6526,5846,8427,180.537,535.807,908.668,299.968,710.63
Operating Cash Flow 1,1761,3151,3051,7061,4271,637.541,718.571,803.601,892.841,986.49
Capital Expenditure -234-196-160-230-279-258.75-271.56-284.99-299.09-313.89
Free Cash Flow 9421,1191,1451,4761,1481,378.791,447.011,518.611,593.741,672.60
WACC
PV LFCF 1,277.011,241.271,206.521,172.751,139.92
SUM PV LFCF 6,037.48

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.97
Free cash flow (t + 1) 1,706.05
Terminal Value 28,577.05
Present Value of Terminal Value 19,476.10

Intrinsic Value

Enterprise Value 25,513.58
Net Debt 11,484
Equity Value 14,029.58
Shares Outstanding 302
Equity Value Per Share 46.46