Name: YUM! Brands Inc. (NYSE:YUM) | Enterprise Value (EV)
Creator: Stock Analysis on Net

Current EV
Historical EV

YUM! Brands Inc., current enterprise value calculation

Current share price (P)	$88.25
No. shares of common stock outstanding	367,005,511
US$ in millions
Common equity (market value)¹	32,388)
Add: Noncontrolling interests (per books)	58)
Total equity	32,446)
Add: Short-term borrowings (per books)	923)
Add: Long-term debt (per books)	3,054)
Total equity and debt	36,423)
Less: Cash and cash equivalents	737)
Enterprise value (EV)	35,686)

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

¹ Common equity (market value) = Share price × No. shares of common stock outstanding
= 88.25 × 367,005,511

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YUM! Brands Inc., EV calculation

	Dec 26, 2015	Dec 27, 2014	Dec 28, 2013	Dec 29, 2012	Dec 31, 2011
Share price^1, 2	$69.52	$76.05	$73.24	$64.56	$65.50
No. shares of common stock outstanding¹	408,711,522	433,115,252	442,931,286	450,729,244	460,414,239
US$ in millions
Common equity (market value)³	28,414)	32,938)	32,440)	29,099)	30,157)
Add: Noncontrolling interests (book value)	58)	57)	63)	99)	93)
Total equity	28,472)	32,995)	32,503)	29,198)	30,250)
Add: Short-term borrowings (book value)	923)	267)	71)	10)	320)
Add: Long-term debt (book value)	3,054)	3,077)	2,918)	2,932)	2,997)
Total equity and debt	32,449)	36,339)	35,492)	32,140)	33,567)
Less: Cash and cash equivalents	737)	578)	573)	776)	1,198)
Enterprise value (EV)	31,712)	35,761)	34,919)	31,364)	32,369)

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 Data adjusted for splits and stock dividends.

² Closing price as at the filing date of YUM! Brands Inc. Annual Report.

³ 2015 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 69.52 × 408,711,522

The financial trajectory of the enterprise value and equity components between 2011 and 2015 is characterized by a period of moderate growth followed by a notable contraction in the final year. The overall trend shows a peak in valuation during 2014, with all measured capital metrics moving in high correlation.

Enterprise Value (EV) Trends: The enterprise value exhibited a fluctuating pattern, beginning at 32,369 million USD in 2011 and experiencing a slight dip to 31,364 million USD in 2012. A recovery and growth phase followed, with the EV climbing to 34,919 million USD in 2013 and reaching a five-year peak of 35,761 million USD in 2014. However, a significant decline occurred by December 26, 2015, where the value dropped to 31,712 million USD, representing a decrease of approximately 11.3% from the 2014 peak.
Equity Valuation and Market Correlation: Common equity market value closely mirrored the movements of the enterprise value throughout the period. Market value fluctuated from 30,157 million USD in 2011 to a peak of 32,938 million USD in 2014, before falling to its lowest point in the series at 28,414 million USD in 2015. The tight alignment between the market value of common equity and total equity suggests a consistent relationship between book and market valuations during this timeframe.
Capital Structure and Debt Integration: Total equity and debt followed the same cyclical pattern as the enterprise value, peaking in 2014 at 36,339 million USD. The narrow variance between the total equity and debt figure and the enterprise value suggests that net debt levels remained relatively stable or were managed in a manner that did not significantly decouple the enterprise value from the aggregate capital base.

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YUM! Brands Inc. (NYSE:YUM)

Enterprise Value (EV)

Current Enterprise Value (EV)

Historical Enterprise Value (EV)