Switch to:
GuruFocus has detected 6 Warning Signs with Yum Brands Inc $YUM.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Yum Brands Inc (NYSE:YUM)
EV-to-EBITDA
14.70 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Yum Brands Inc's enterprise value is $31,076 Mil. Yum Brands Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $2,114 Mil. Therefore, Yum Brands Inc's EV/EBITDA ratio for today is 14.70.

YUM' s EV-to-EBITDA Range Over the Past 10 Years
Min: 5.7   Max: 17.5
Current: 14.72

5.7
17.5

During the past 13 years, the highest EV/EBITDA Ratio of Yum Brands Inc was 17.50. The lowest was 5.70. And the median was 8.70.

YUM's EV-to-EBITDA is ranked lower than
59% of the 311 Companies
in the Global Restaurants industry.

( Industry Median: 12.41 vs. YUM: 14.72 )

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

As of today, Yum Brands Inc's stock price is $64.02. Yum Brands Inc's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $4.06. Therefore, Yum Brands Inc's P/E Ratio for today is 15.77.

The "classic" EV/EBITDA ratio is much better in capturing debt and net cash than the P/E Ratio.


Definition

Yum Brands Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=31076.100/2114
=14.70

Yum Brands Inc's current Enterprise Value is $31,076 Mil.
Yum Brands Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 700 (Mar. 2016 ) + 669 (Jun. 2016 ) + 829 (Sep. 2016 ) + -84 (Dec. 2016 ) = $2,114 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

Yum Brands Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=64.02/4.06
=15.77

Yum Brands Inc's share price for today is $64.02.
Yum Brands Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was 0.93 (Mar. 2016 ) + 0.81 (Jun. 2016 ) + 1.56 (Sep. 2016 ) + 0.76 (Dec. 2016 ) = $4.06.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Study has found that the companies with the lowest EV/EBITDA outperforms companies measured as cheap by other ratios such as P/E Ratio.

Please read Which price ratio outperforms the enterprise multiple?


Related Terms

Enterprise Value, Earnings Before Depreciation and Amortization, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Yum Brands Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 8.526.596.767.968.758.0310.5312.6413.4714.62

Yum Brands Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 8.5712.6413.9616.6114.2713.4714.2013.6914.5514.62
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK