Home Depot Net Income Per Employee vs Enterprise Value Analysis

Net Income Per Employee vs Enterprise Value

Net Income Per Employee

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 Inc 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.

Accounts Relationship

Net Income Per Employee vs Enterprise Value

Significance: Almost Identical Trend

Overlapping area represents amount of trend that can be explained by analyzing historical patterns of The Home Depot Net Income Per Employee account and Enterprise Value

Correlation Coefficient

0.93
Relationship DirectionPositive 
Relationship StrengthVery Strong