YUM — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($162.92)
DCF	$258.14	+58.4%
Graham Number	—	—
Reverse DCF	—	implied g: 20.9%
DDM	$61.80	-62.1%
EV/EBITDA	$162.59	-0.2%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.31B

Near-term growth (yrs 1–5)(%)Rev: 6.5% / EPS: 27.7%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.89%

Computed WACC: 6.89%

Cost of equity (Re)7.81%(Rf 4.30% + β 0.64 × ERP 5.50%)

Cost of debt (Rd)4.69%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)77.43%

Debt weight (D/V)22.57%

Results

Intrinsic Value / share$435.66

Current Price$162.92

Upside / Downside+167.4%

Net Debt (used)$12.48B

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	19.7%	23.7%	27.7%	31.7%	35.7%
7.0%	$296.60	$355.43	$422.22	$497.78	$582.93
8.0%	$226.31	$272.63	$325.19	$384.61	$451.55
9.0%	$178.11	$215.86	$258.67	$307.04	$361.52
10.0%	$143.12	$174.66	$210.41	$250.78	$296.23
11.0%	$116.67	$143.52	$173.93	$208.27	$246.90

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $5.56

Book Value / share($)Yahoo: $-26.44

Results

Graham Number requires positive EPS and positive Book Value per share. BVPS is zero or negative.

Graham Number—

Current Price$162.92

Margin of Safety—

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.89%

Terminal growth rate(%)

Computed WACC: 6.89%

Cost of equity (Re)7.81%(Rf 4.30% + β 0.64 × ERP 5.50%)

Cost of debt (Rd)4.69%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)77.43%

Debt weight (D/V)22.57%

Results

Current Price$162.92

Implied Near-term FCF Growth13.5%

Historical Revenue Growth6.5%

Historical Earnings Growth27.7%

Base FCF (TTM)$1.31B

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: $3.00

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$61.80

Current Price$162.92

Upside / Downside-62.1%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $2.91B

Target EV/EBITDA multipleCurrent: 19.8×

Net Debt($B)Default: $12.48B

Results

Implied Equity Value / share$162.59

Current Price$162.92

Upside / Downside-0.2%

Implied EV$57.52B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	$6.48B	$9.48B	$12.48B	$15.48B	$18.48B
15.8x	$142.22	$131.39	$120.56	$109.73	$98.90
17.8x	$163.24	$152.40	$141.57	$130.74	$119.91
19.8x	$184.25	$173.42	$162.59	$151.76	$140.92
21.8x	$205.26	$194.43	$183.60	$172.77	$161.94
23.8x	$226.27	$215.44	$204.61	$193.78	$182.95

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