Discounted Cash Flow

YUM Brands Inc.

YUM · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $-307.0m $1.6b $2.0b -527.4% $4.11
2017 $-440.0m (-43.3%) $1.3b (-17.2%) $1.0b (-49.3%) -304.5% (42.3%) $3.86 (-6.1%)
2018 $5.7b (1392.7%) $1.5b (15.1%) $976.0m (-5.2%) 27.1% (108.9%) $4.80 (24.4%)
2019 $5.6b (-1.6%) $1.3b (-16.1%) $1.1b (14.7%) 23.1% (-14.7%) $4.23 (-11.9%)
2020 $5.7b (1.0%) $904.0m (-30.1%) $1.1b (2.3%) 16.0% (-30.8%) $2.99 (-29.3%)
2021 $6.6b (16.5%) $1.6b (74.2%) $1.5b (28.9%) 23.9% (49.6%) $5.30 (77.3%)
2022 $6.8b (3.9%) $1.3b (-15.9%) $1.1b (-22.2%) 19.4% (-19.0%) $4.63 (-12.6%)
2023 $7.1b (3.4%) $1.6b (20.5%) $1.3b (14.8%) 22.6% (16.5%) $5.68 (22.7%)
2024 $7.5b (6.7%) $1.5b (-7.0%) $1.4b (8.6%) 19.7% (-12.8%) $5.28 (-7.0%)
2025 $8.2b (8.8%) $1.6b (4.9%) $1.6b (14.5%) 19.0% (-3.6%) $5.59 (5.9%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model