Sprint Average Equity vs Enterprise Value Analysis

Average Equity vs Enterprise Value

Average Equity

Average equity value for the period used in calculation of Return on Average Equity, derived from Shareholders Equity.

Enterprise Value

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

Accounts Relationship

Average Equity vs Enterprise Value

Significance: Fragmental Relationship

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

Correlation Coefficient

0.45
Relationship DirectionPositive 
Relationship StrengthWeak