Yum! Brands operates quick service restaurants. It operates in five segments: YUM China, YUM India, the KFC Division, the Pizza Hut Division, and the Taco Bell Division. The company was founded in 1997 and is based in Louisville, Kentucky.
YUM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Yum Brands Inc. To summarize, we found that Yum Brands Inc ranked in the 20th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 72.17%. In terms of the factors that were most noteworthy in this DCF analysis for YUM, they are:
The company's compound free cash flow growth rate over the past 5.79 years comes in at -0.06%; that's greater than only 20.96% of US stocks we're applying DCF forecasting to.
Yum Brands Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 16.92% of tickers in our DCF set.
As a business, Yum Brands Inc experienced a tax rate of about 3% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than just 21.78% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Yum Brands Inc? See BURL, TPCO, WPP, GFASY, and MGM.
Moody's Investors Service ("Moody's") has today downgraded to Caa3 from B3 the corporate family rating (CFR) of Foodco Bondco, S.A.U. ("Telepizza" or "the company"), the parent company of Spanish pizza delivery operator Telepizza. Concurrently, Moody's has downgraded to Caa3-PD from B3-PD the company's probability of default rating (PDR), and to Caa3 from B3 the rating on the E335 million senior secured notes due 2026 issued by Foodco Bondco, S.A.U. The outlook has been changed to negative from stable.
In this article you are going to find out whether hedge funds think Yum! Brands, Inc. (NYSE:YUM) is a good investment right now. We like to check what the smart money thinks first before doing extensive research on a given stock. Although there have been several high profile failed hedge fund picks, the consensus picks […]