Chevron Enterprise Value vs Average Equity Analysis

Enterprise Value vs Average Equity

Enterprise Value

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

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: Very Strong Relationship

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

Correlation Coefficient

0.89
Relationship DirectionPositive 
Relationship StrengthStrong