Discounted Cash Flow (DCF) Analysis Unlevered

Yum! Brands, Inc. (YUM)

$127.64

-0.91 (-0.71%)
All numbers are in Millions, Currency in USD
Stock DCF: 104.64 | 127.64 | overvalue

Operating Data

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 (%)
EBITDA 2,4281,9711,7092,3822,3352,562.662,689.452,822.522,962.173,108.73
EBITDA (%)
EBIT 2,2911,8591,5632,2182,1892,395.812,514.352,638.762,769.322,906.34
EBIT (%)
Depreciation 137112146164146166.84175.10183.76192.85202.39
Depreciation (%)

Balance Sheet Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Total Cash 292605730486367597.48627.04658.07690.63724.80
Total Cash (%)
Account Receivables 597623569646648732.08768.30806.31846.21888.08
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 2021732152271,251462.11484.98508.97534.15560.58
Accounts Payable (%)
Capital Expenditure -234-196-160-230-279-258.75-271.56-284.99-299.09-313.89
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 127.64
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 8.142
Total Debt 11,851
Total Equity 38,547.28
Total Capital 50,398.28
Debt Weighting 23.51
Equity Weighting 76.49
Wacc

Build Up Free Cash

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
EBITDA 2,4281,9711,7092,3822,3352,562.662,689.452,822.522,962.173,108.73
EBIT 2,2911,8591,5632,2182,1892,395.812,514.352,638.762,769.322,906.34
Tax Rate 16.15%5.75%11.37%5.91%20.28%11.89%11.89%11.89%11.89%11.89%
EBIAT 1,9211,752.041,385.252,086.831,745.142,110.872,215.312,324.922,439.952,560.68
Depreciation 137112146164146166.84175.10183.76192.85202.39
Accounts Receivable --2654-77-2-84.08-36.22-38.01-39.89-41.87
Inventories ----------
Accounts Payable --2942121,024-788.8922.862425.1826.43
Capital Expenditure -234-196-160-230-279-258.75-271.56-284.99-299.09-313.89
UFCF 1,8241,613.041,467.251,955.832,634.141,145.992,105.492,209.672,3192,433.74
WACC
PV UFCF 1,070.421,836.961,800.721,765.191,730.36
SUM PV UFCF 8,203.65

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.06
Free cash flow (t + 1) 2,482.41
Terminal Value 49,059.53
Present Value of Terminal Value 34,880.86

Intrinsic Value

Enterprise Value 43,084.51
Net Debt 11,484
Equity Value 31,600.51
Shares Outstanding 302
Equity Value Per Share 104.64