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Yum Brands (BSP:YUMR34) E10 : R$12.03 (As of Mar. 2024)


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What is Yum Brands E10?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Yum Brands's adjusted earnings per share data for the three months ended in Mar. 2024 was R$2.739. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is R$12.03 for the trailing ten years ended in Mar. 2024.

During the past 12 months, Yum Brands's average E10 Growth Rate was 8.90% per year. During the past 3 years, the average E10 Growth Rate was 9.60% per year. During the past 5 years, the average E10 Growth Rate was 7.40% per year. During the past 10 years, the average E10 Growth Rate was 7.90% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the E10 growth rate using E10 data.

During the past 13 years, the highest 3-Year average E10 Growth Rate of Yum Brands was 13.00% per year. The lowest was 5.70% per year. And the median was 8.65% per year.

As of today (2024-05-26), Yum Brands's current stock price is R$364.68. Yum Brands's E10 for the quarter that ended in Mar. 2024 was R$12.03. Yum Brands's Shiller PE Ratio of today is 30.31.

During the past 13 years, the highest Shiller PE Ratio of Yum Brands was 35.24. The lowest was 16.50. And the median was 26.91.


Yum Brands E10 Historical Data

The historical data trend for Yum Brands's E10 can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Yum Brands E10 Chart

Yum Brands Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.04 9.10 11.23 10.68 11.37

Yum Brands Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
E10 Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.73 10.59 11.64 11.37 12.03

Competitive Comparison of Yum Brands's E10

For the Restaurants subindustry, Yum Brands's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Yum Brands's Shiller PE Ratio Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Yum Brands's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Yum Brands's Shiller PE Ratio falls into.



Yum Brands E10 Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today's price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, Yum Brands's adjusted earnings per share data for the three months ended in Mar. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=2.739/131.7762*131.7762
=2.739

Current CPI (Mar. 2024) = 131.7762.

Yum Brands Quarterly Data

per share eps CPI Adj_EPS
201406 0.816 100.560 1.069
201409 1.040 100.428 1.365
201412 -0.264 99.070 -0.351
201503 1.272 99.621 1.683
201506 0.825 100.684 1.080
201509 1.854 100.392 2.434
201512 1.222 99.792 1.614
201603 1.609 100.470 2.110
201606 1.386 101.688 1.796
201609 2.635 101.861 3.409
201612 1.375 101.863 1.779
201703 1.204 102.862 1.542
201706 0.956 103.349 1.219
201709 1.848 104.136 2.339
201712 2.076 104.011 2.630
201803 2.082 105.290 2.606
201806 1.829 106.317 2.267
201809 2.876 106.507 3.558
201812 2.019 105.998 2.510
201903 1.594 107.251 1.959
201906 1.774 108.070 2.163
201909 1.668 108.329 2.029
201912 3.243 108.420 3.942
202003 0.660 108.902 0.799
202006 1.738 108.767 2.106
202009 2.484 109.815 2.981
202012 2.778 109.897 3.331
202103 3.015 111.754 3.555
202106 3.243 114.631 3.728
202109 4.619 115.734 5.259
202112 3.138 117.630 3.515
202203 3.384 121.301 3.676
202206 1.943 125.017 2.048
202209 2.989 125.227 3.145
202212 3.383 125.222 3.560
202303 2.735 127.348 2.830
202306 3.543 128.729 3.627
202309 3.605 129.860 3.658
202312 3.969 129.419 4.041
202403 2.739 131.776 2.739

Add all the adjusted EPS together and divide 10 will get our e10.


Yum Brands  (BSP:YUMR34) E10 Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Yum Brands's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=364.68/12.03
=30.31

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

During the past 13 years, the highest Shiller P/E Ratio of Yum Brands was 35.24. The lowest was 16.50. And the median was 26.91.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


Yum Brands E10 Related Terms

Thank you for viewing the detailed overview of Yum Brands's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


Yum Brands (BSP:YUMR34) Business Description

Traded in Other Exchanges
Address
1441 Gardiner Lane, Louisville, KY, USA, 40213
Yum Brands is a U.S.-based restaurant operator featuring a portfolio of four brands: KFC (27,760 global units at year-end 2022), Pizza Hut (19,034 units), Taco Bell (8,203 units), and The Habit Burger Grill (346 units). With $59 billion in 2022 systemwide sales, the firm is the second-largest restaurant company in the world behind McDonald's ($116 billion), ahead of Restaurant Brands International ($39 billion) and Starbucks ($27 billion). Yum is 98% franchised, with the largest franchisee, Yum China, spun out in 2016 (after which Yum China agreed to pay 3% royalties to Yum Brands in perpetuity). Yum is the newest evolution of Tricon, formerly a division of PepsiCo, and generates the bulk of its revenue from franchise royalties and marketing contributions.

Yum Brands (BSP:YUMR34) Headlines

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