Chevron Enterprise Value vs Free Cash Flow Analysis

Enterprise Value vs Free Cash Flow

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.

Free Cash Flow

Free Cash Flow is a measure of financial performance calculated as Net Cash Flow from Operations minus Capital Expenditure.

Accounts Relationship

Enterprise Value vs Free Cash Flow

Significance: Significant Contrarian Relationship

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

Correlation Coefficient

-0.35
Relationship DirectionNegative 
Relationship StrengthInsignificant