Sprint Earnings before Tax vs Enterprise Value Analysis

Earnings before Tax vs Enterprise Value

Earnings before Tax

Earnings Before Tax is calculated by adding Income Tax Expense back to Net Income.

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

Earnings before Tax vs Enterprise Value

Significance: Significant Contrarian Relationship

Overlapping area represents amount of trend that can be explained by analyzing historical patterns of Sprint Earnings before Tax account and Enterprise Value

Correlation Coefficient

-0.28
Relationship DirectionNegative 
Relationship StrengthInsignificant