Home Depot Invested Capital Average vs Enterprise Value Analysis

HD -- USA Stock  

USD 199.08  1.67  0.85%

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 Invested Capital Average and its Enterprise Value accounts. Please also check Risk vs Return Analysis.

Invested Capital Average vs Enterprise Value

Accounts Relationship

Invested Capital Average vs Enterprise Value

Significance: Weak Relationship

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

Correlation Coefficient

0.34
Relationship DirectionPositive 
Relationship StrengthVery Weak

Invested Capital Average

Average invested capital value for the period used in the calculation of Return on Invested Capital, and derived from Invested Capital. 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 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.

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Please also check Risk vs Return Analysis. Please also try Fundamental Analysis module to view fundamental data based on most recent published financial statements.