Alcoa Average Equity vs Enterprise Value Analysis

    Average Equity vs Enterprise Value

    Average Equity

    Average equity value for the period used in calculation of Return on Average Equity, derived from Shareholders Equity.

    Enterprise Value

    Enterprise Value (or EV) is usually referred to as Alcoa theoretical takeover price. In the event of an acquisition, an acquirer would have to take on Alcoa debt, but would also pocket its cash. Enterprise Value is more accurate representation of Alcoa value then its market capitalization because it takes into account all of Alcoa Corporation existing debt. Enterprise value is a measure of the value of a business as a whole, calculated as Market Capitalization plus Total Debt USD minus Cash and Equivalents USD.

    Accounts Relationship

    Average Equity vs Enterprise Value

    Significance: Strong Contrarian Relationship

    Overlapping area represents amount of trend that can be explained by analyzing historical patterns of Alcoa Average Equity account and Enterprise Value

    Correlation Coefficient

    -0.51
    Relationship DirectionNegative 
    Relationship StrengthVery Weak