Market Capitalization vs Enterprise Value
Market capitalization (or market cap) is the total value of the shares outstanding of Alcoa Inc. It is equal to Alcoa current share price times the number of Alcoa Inc outstanding shares. Represents the product of [SHARESBAS], [PRICE] and [SHAREFACTOR].
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 Inc 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 Inc 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