CVS Health Invested Capital vs Enterprise Value Analysis

CVS -- USA Stock  

USD 68.97  1.72  2.43%

CVS Health financial indicator trend analysis is way more than just evaluating CVS Health prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether CVS Health is a good investment. Please check the relationship between CVS Health Invested Capital and its Enterprise Value accounts. Check also Trending Equities.

Invested Capital vs Enterprise Value

Accounts Relationship

Invested Capital vs Enterprise Value

Significance: Very Strong Relationship

Invested Capital diversification synergy
Overlapping area represents amount of trend that can be explained by analyzing historical patterns of CVS Health Invested Capital account and Enterprise Value

Correlation Coefficient

0.82
Relationship DirectionPositive 
Relationship StrengthStrong

Invested Capital

Invested capital represents the total cash investment that shareholders and debt holders have contributed to CVS Health Corporation. There are two different methods for calculating CVS Health invested capital: operating approach and financing approach. Understanding ##company1# invested capital allows investors to calculate measures of performance such as return on invested capital or return on capital employed. Invested capital is an input into the calculation of Return on Invested Capital; and is calculated as: Total Debt plus Total Assets minus Goodwill and Intangible Assets minus Cash and Equivalents minus Current Liabilities. Please note this calculation method is subject to change.

Enterprise Value

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

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