What is Yum Brands Inc worth?
With the base-case assumptions below, a discounted cash flow model on Yum Brands Inc's reported free cash flow gives $120.61 per share. The share price was $138.63 on September 25, 2026, 15% above that value.
Inputs from the filings
Three sets of assumptions
| Case | Growth yrs 1-5 | Discount rate | Value per share | Value vs price |
|---|---|---|---|---|
| Bear | 3.0% | 10.0% | $71.07 | -49% |
| Base | 8.0% | 9.0% | $120.61 | -13% |
| Bull | 13.0% | 8.0% | $213.06 | +54% |
Sensitivity: base case value per share
| 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | |
|---|---|---|---|---|---|
| 7.0% | $156.71 | $167.79 | $181.33 | $198.25 | $220.01 |
| 8.0% | $129.73 | $136.92 | $145.40 | $155.59 | $168.04 |
| 9.0% | $110.03 | $114.95 | $120.61 | $127.22 | $135.04 |
| 10.0% | $95.05 | $98.54 | $102.50 | $107.02 | $112.24 |
| 11.0% | $83.27 | $85.83 | $88.69 | $91.91 | $95.56 |
Where the presets come from
Base: years 1 to 5 grow at Yum Brands Inc's revenue growth rate over the last 5 fiscal years (7.8% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.
Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.
Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.
This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.
Adjust the assumptions
Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.
Adjust the assumptions