Citigroup Enterprise Value vs Average Equity Analysis

Enterprise Value vs Average 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.

Average Equity

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

Accounts Relationship

Enterprise Value vs Average Equity

Significance: Strong Contrarian Relationship

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

Correlation Coefficient

-0.67
Relationship DirectionNegative 
Relationship StrengthWeak