Alcoa Enterprise Value vs Earnings before Tax Analysis

    Enterprise Value vs Earnings before Tax

    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.

    Earnings before Tax

    Earnings Before Tax is calculated by adding Income Tax Expense back to Net Income.

    Accounts Relationship

    Enterprise Value vs Earnings before Tax

    Significance: Significant Contrarian Relationship

    Overlapping area represents amount of trend that can be explained by analyzing historical patterns of Alcoa Enterprise Value account and Earnings before Tax

    Correlation Coefficient

    -0.34
    Relationship DirectionNegative 
    Relationship StrengthInsignificant