Stock Analysis on Net

YUM! Brands Inc. (NYSE:YUM)

This company has been moved to the archive! The financial data has not been updated since October 11, 2016.

Enterprise Value to EBITDA (EV/EBITDA)

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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

YUM! Brands Inc., EBITDA calculation

US$ in millions

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12 months ended: Dec 26, 2015 Dec 27, 2014 Dec 28, 2013 Dec 29, 2012 Dec 31, 2011
Net income, YUM! Brands, Inc. 1,293 1,051 1,091 1,597 1,319
Add: Net income attributable to noncontrolling interest 5 (30) (27) 11 16
Add: Income tax expense 489 406 487 537 324
Earnings before tax (EBT) 1,787 1,427 1,551 2,145 1,659
Add: Interest expense 155 152 270 169 184
Earnings before interest and tax (EBIT) 1,942 1,579 1,821 2,314 1,843
Add: Depreciation and amortization 747 739 721 645 628
Earnings before interest, tax, depreciation and amortization (EBITDA) 2,689 2,318 2,542 2,959 2,471

Based on: 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. YUM! Brands Inc. EBITDA decreased from 2013 to 2014 but then increased from 2014 to 2015 exceeding 2013 level.

Enterprise Value to EBITDA Ratio, Current

YUM! Brands Inc., current EV/EBITDA calculation, comparison to benchmarks

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 35,686
Earnings before interest, tax, depreciation and amortization (EBITDA) 2,689
Valuation Ratio
EV/EBITDA 13.27
Benchmarks
EV/EBITDA, Competitors1
Airbnb Inc. 44.68
Booking Holdings Inc. 18.47
Carnival Corp. & plc 11.58
Chipotle Mexican Grill Inc. 40.66
McDonald’s Corp. 17.31
Starbucks Corp. 15.54

Based on: 10-K (reporting date: 2015-12-26).

1 Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.


Enterprise Value to EBITDA Ratio, Historical

YUM! Brands Inc., historical EV/EBITDA calculation, comparison to benchmarks

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Dec 26, 2015 Dec 27, 2014 Dec 28, 2013 Dec 29, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 31,712 35,761 34,919 31,364 32,369
Earnings before interest, tax, depreciation and amortization (EBITDA)2 2,689 2,318 2,542 2,959 2,471
Valuation Ratio
EV/EBITDA3 11.79 15.43 13.74 10.60 13.10
Benchmarks
EV/EBITDA, Competitors4
Airbnb Inc.
Booking Holdings Inc.
Carnival Corp. & plc
Chipotle Mexican Grill Inc.
McDonald’s Corp.
Starbucks Corp.

Based on: 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31).

1 See details »

2 See details »

3 2015 Calculation
EV/EBITDA = EV ÷ EBITDA
= 31,712 ÷ 2,689 = 11.79

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. YUM! Brands Inc. EV/EBITDA ratio increased from 2013 to 2014 but then decreased significantly from 2014 to 2015.