Alcoa Free Cash Flow vs Enterprise Value Analysis

    Free Cash Flow vs Enterprise Value

    Free Cash Flow

    Free Cash Flow is a measure of financial performance calculated as Net Cash Flow from Operations minus Capital Expenditure.

    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

    Free Cash Flow vs Enterprise Value

    Significance: Significant Contrarian Relationship

    Overlapping area represents amount of trend that can be explained by analyzing historical patterns of Alcoa Free Cash Flow account and Enterprise Value

    Correlation Coefficient

    -0.22
    Relationship DirectionNegative 
    Relationship StrengthInsignificant