Home Depot Enterprise Value vs Invested Capital Analysis

HD -- USA Stock  

USD 191.17  6.00  3.24%

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 Invested Capital accounts. Please also check Risk vs Return Analysis.

Enterprise Value vs Invested Capital

Accounts Relationship

Enterprise Value vs Invested Capital

Significance: Fragmental Relationship

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

Correlation Coefficient

0.56
Relationship DirectionPositive 
Relationship StrengthWeak

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.

Invested Capital

Invested capital represents the total cash investment that shareholders and debt holders have contributed to The Home Depot. There are two different methods for calculating The Home Depot 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.

Did you try this?

Run Fundamental Analysis Now

   

Fundamental Analysis

View fundamental data based on most recent published financial statements
All  Next Launch Fundamental Analysis

Build Efficient Portfolios

Align your risk and return expectations

Fix your portfolio
By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
Please also check Risk vs Return Analysis. Please also try Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Search macroaxis.com