Home Depot Enterprise Value vs Average Equity Analysis

HD -- USA Stock  

USD 197.41  2.90  1.45%

Home Depot financial indicator trend analysis is much more than just examining The Home Depot latest accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether The Home Depot is a good investment. Please check the relationship between Home Depot Enterprise Value and its Average Equity accounts. Please also check Risk vs Return Analysis.

Enterprise Value vs Average Equity

Accounts Relationship

Enterprise Value vs Average Equity

Significance: Pay attention

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

Correlation Coefficient

-0.89
Relationship DirectionNegative 
Relationship StrengthSignificant

Enterprise Value

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

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