Discounted Cash Flow (DCF) Analysis Levered
Yum! Brands, Inc. (YUM)
$109.46
-3.01 (-2.68%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
Revenue | 5,878 | 5,688 | 5,597 | 5,652 | 6,584 | 6,792.06 | 7,006.69 | 7,228.10 | 7,456.51 | 7,692.14 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 1,030 | 1,176 | 1,315 | 1,305 | 1,706 | 1,503.67 | 1,551.19 | 1,600.20 | 1,650.77 | 1,702.94 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -318 | -234 | -196 | -160 | -230 | -262.85 | -271.16 | -279.73 | -288.57 | -297.69 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 712 | 942 | 1,119 | 1,145 | 1,476 | 1,240.82 | 1,280.03 | 1,320.48 | 1,362.21 | 1,405.25 |
Weighted Average Cost Of Capital
Share price | $ 109.46 |
---|---|
Beta | 1.097 |
Diluted Shares Outstanding | 307 |
Cost of Debt | |
Tax Rate | 5.91 |
After-tax Cost of Debt | 4.52% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 8.062 |
Total Debt | 11,334 |
Total Equity | 33,604.22 |
Total Capital | 44,938.22 |
Debt Weighting | 25.22 |
Equity Weighting | 74.78 |
Wacc |
Build Up Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
Revenue | 5,878 | 5,688 | 5,597 | 5,652 | 6,584 | 6,792.06 | 7,006.69 | 7,228.10 | 7,456.51 | 7,692.14 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 1,030 | 1,176 | 1,315 | 1,305 | 1,706 | 1,503.67 | 1,551.19 | 1,600.20 | 1,650.77 | 1,702.94 |
Capital Expenditure | -318 | -234 | -196 | -160 | -230 | -262.85 | -271.16 | -279.73 | -288.57 | -297.69 |
Free Cash Flow | 712 | 942 | 1,119 | 1,145 | 1,476 | 1,240.82 | 1,280.03 | 1,320.48 | 1,362.21 | 1,405.25 |
WACC | ||||||||||
PV LFCF | 1,157.80 | 1,114.48 | 1,072.78 | 1,032.64 | 994 | |||||
SUM PV LFCF | 5,371.71 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 7.17 |
Free cash flow (t + 1) | 1,433.36 |
Terminal Value | 27,724.49 |
Present Value of Terminal Value | 19,610.90 |
Intrinsic Value
Enterprise Value | 24,982.61 |
---|---|
Net Debt | 10,848 |
Equity Value | 14,134.61 |
Shares Outstanding | 307 |
Equity Value Per Share | 46.04 |