Alcoa Invested Capital Average vs Enterprise Value Analysis

    Invested Capital Average vs Enterprise Value

    Invested Capital Average

    Average invested capital value for the period used in the calculation of Return on Invested Capital, and derived from Invested Capital. Invested capital is an input into the calculation of Return on Invested Capital, and is calculated as: Total Debt plus Total Assets minus Goodwill and Intangible Assets minus Cash and Equivalents minus Current Liabilities. Please note this calculation method is subject to change.

    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

    Invested Capital Average vs Enterprise Value

    Significance: Strong Contrarian Relationship

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

    Correlation Coefficient

    -0.51
    Relationship DirectionNegative 
    Relationship StrengthVery Weak