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 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

    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.

    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 Inc Market Capitalization account and Enterprise Value

    Correlation Coefficient

    Relationship DirectionPositive 
    Relationship StrengthVery Strong