American Airlines 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 American Airlines theoretical takeover price. In the event of an acquisition, an acquirer would have to take on American Airlines Group debt, but would also pocket its cash. Enterprise Value is more accurate representation of American Airlines value then its market capitalization because it takes into account all of American Airlines Group 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

Free Cash Flow vs Enterprise Value

Significance: Almost No Relationship

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

Correlation Coefficient

0.17
Relationship DirectionPositive 
Relationship StrengthInsignificant