Question 1

What is Yum China Holdings, Inc. Common Stock's WACC?

Accepted Answer

Yum China Holdings, Inc. Common Stock (YUMC) has a Weighted Average Cost of Capital (WACC) of 9.01%. This is calculated using a Cost of Equity of 8.49% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 101.57%, with an equity weight of 99.27% in the capital structure.

Question 2

Is Yum China Holdings, Inc. Common Stock's WACC high or low?

Accepted Answer

Yum China Holdings, Inc. Common Stock's WACC of 9.01% falls within the typical 8-12% range for mid-cap growth companies. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is Yum China Holdings, Inc. Common Stock's WACC calculated?

Accepted Answer

Yum China Holdings, Inc. Common Stock's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.49% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 101.57%. The capital structure is 99.27% equity and 0.73% debt.

Yum China Holdings, Inc. Common Stock (YUMC) — WACC 分析

WACC 构成

解读

Yum China Holdings, Inc. Common Stock（YUMC）WACC：9.01%

WACC计算器

Yum China Holdings, Inc. Common Stock（YUMC） WACC 解读

YUMC 公司分析

YUMC DCF 估值

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