YUMC — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($52.34)
DCF	$155.56	+197.2%
Graham Number	$29.29	-44.0%
Reverse DCF	—	implied g: 15.3%
DDM	$23.90	-54.3%
EV/EBITDA	$55.55	+6.1%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $609.12M

Near-term growth (yrs 1–5)(%)Rev: 8.8% / EPS: 34.3%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 4.32%

Computed WACC: 4.32%

Cost of equity (Re)4.87%(Rf 4.30% + β 0.10 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

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

Equity weight (E/V)88.73%

Debt weight (D/V)11.27%

Results

Intrinsic Value / share$675.82

Current Price$52.34

Upside / Downside+1191.2%

Net Debt (used)$940.00M

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

WACC \ Near-term	26.3%	30.3%	34.3%	38.3%	42.3%
7.0%	$180.09	$210.08	$243.92	$281.98	$324.65
8.0%	$141.60	$165.10	$191.62	$221.44	$254.85
9.0%	$115.25	$134.32	$155.84	$180.01	$207.10
10.0%	$96.16	$112.03	$129.92	$150.02	$172.53
11.0%	$81.76	$95.22	$110.38	$127.41	$146.47

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $2.51

Book Value / share($)Yahoo: $15.20

Results

Graham Number$29.29

Current Price$52.34

Margin of Safety-44.0%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 4.32%

Terminal growth rate(%)

Computed WACC: 4.32%

Cost of equity (Re)4.87%(Rf 4.30% + β 0.10 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

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

Equity weight (E/V)88.73%

Debt weight (D/V)11.27%

Results

Current Price$52.34

Implied Near-term FCF Growth-4.8%

Historical Revenue Growth8.8%

Historical Earnings Growth34.3%

Base FCF (TTM)$609.12M

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: $1.16

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$23.90

Current Price$52.34

Upside / Downside-54.3%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.78B

Target EV/EBITDA multipleCurrent: 11.6×

Net Debt($B)Default: $940.00M

Results

Implied Equity Value / share$55.55

Current Price$52.34

Upside / Downside+6.1%

Implied EV$20.55B

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

Mult \ Net Debt	-$1.06B	-$60.00M	$940.00M	$1.94B	$2.94B
7.6x	$41.10	$38.27	$35.44	$32.61	$29.77
9.6x	$51.16	$48.33	$45.50	$42.66	$39.83
11.6x	$61.22	$58.38	$55.55	$52.72	$49.89
13.6x	$71.27	$68.44	$65.61	$62.77	$59.94
15.6x	$81.33	$78.50	$75.66	$72.83	$70.00

← Overview Financial Statements ← Companies