Citigroup Average Equity vs Enterprise Value Analysis

Average Equity vs Enterprise Value

Average Equity

Average equity value for the period used in calculation of Return on Average Equity, derived from Shareholders Equity.

Enterprise Value

Enterprise Value (or EV) is usually referred to as Citigroup theoretical takeover price. In the event of an acquisition, an acquirer would have to take on Citigroup Inc debt, but would also pocket its cash. Enterprise Value is more accurate representation of Citigroup value then its market capitalization because it takes into account all of Citigroup 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

Average Equity vs Enterprise Value

Significance: Strong Contrarian Relationship

Overlapping area represents amount of trend that can be explained by analyzing historical patterns of Citigroup Inc Average Equity account and Enterprise Value

Correlation Coefficient

-0.67
Relationship DirectionNegative 
Relationship StrengthWeak