YUM! Brands Inc., FCFE calculation

US$ in millions

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)
Net (income) loss, noncontrolling interests	5)	(30)	(27)	11)	16)
Net noncash charges	711)	1,164)	1,178)	574)	721)
Changes in operating capital	130)	(136)	(103)	112)	114)
Net cash provided by operating activities	2,139)	2,049)	2,139)	2,294)	2,170)
Capital spending	(973)	(1,033)	(1,049)	(1,099)	(940)
Proceeds from long-term debt	—)	—)	599)	—)	404)
Repayments of long-term debt	(263)	(66)	(666)	(282)	(666)
Revolving credit facilities, three months or less, net	285)	416)	—)	—)	—)
Short-term borrowings, original maturity more than three months, proceeds	609)	2)	56)	—)	—)
Short-term borrowings, original maturity more than three months, payments	—)	(2)	(56)	—)	—)
Short-term borrowings, original maturity three months or less, net	—)	—)	—)	—)	—)
Free cash flow to equity (FCFE)	1,797)	1,366)	1,023)	913)	968)

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).

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Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to YUM! Brands Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	YUM! Brands Inc. FCFE increased from 2013 to 2014 and from 2014 to 2015.

YUM! Brands Inc., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	367,005,511
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	1,797)
FCFE per share	4.90
Current share price (P)	88.25
Valuation Ratio
P/FCFE	18.02
Benchmarks
P/FCFE, Competitors¹
Airbnb Inc.	26.14
Booking Holdings Inc.	13.90
Carnival Corp. & plc	—
Chipotle Mexican Grill Inc.	64.34
McDonald’s Corp.	19.17
Starbucks Corp.	24.59

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

¹ Click competitor name to see calculations.

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

YUM! Brands Inc., historical P/FCFE calculation, comparison to benchmarks

	Dec 26, 2015	Dec 27, 2014	Dec 28, 2013	Dec 29, 2012	Dec 31, 2011
No. shares of common stock outstanding¹	408,711,522	433,115,252	442,931,286	450,729,244	460,414,239
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	1,797)	1,366)	1,023)	913)	968)
FCFE per share³	4.40	3.15	2.31	2.03	2.10
Share price^1, 4	69.52	76.05	73.24	64.56	65.50
Valuation Ratio
P/FCFE⁵	15.81	24.11	31.71	31.87	31.15
Benchmarks
P/FCFE, Competitors⁶
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 Data adjusted for splits and stock dividends.

² See details »

³ 2015 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 1,797,000,000 ÷ 408,711,522 = 4.40

⁴ Closing price as at the filing date of YUM! Brands Inc. Annual Report.

⁵ 2015 Calculation
P/FCFE = Share price ÷ FCFE per share
= 69.52 ÷ 4.40 = 15.81

⁶ Click competitor name to see calculations.

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Valuation ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	YUM! Brands Inc. P/FCFE ratio decreased from 2013 to 2014 and from 2014 to 2015.

YUM! Brands Inc. (NYSE:YUM)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical