Alcoa Market Capitalization vs Enterprise Value Analysis

    Market Capitalization vs Enterprise Value

    Market Capitalization

    Market capitalization (or market cap) is the total value of the shares outstanding of Alcoa Corporation. It is equal to Alcoa current share price times the number of Alcoa outstanding shares. Represents the product of Total Shares (Basic) , Adjusted Share Price and Entity Share Factor.

    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

    Market Capitalization vs Enterprise Value

    Significance: Almost Identical Trend

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

    Correlation Coefficient

    0.98
    Relationship DirectionPositive 
    Relationship StrengthVery Strong