Alcoa Enterprise Value vs Invested Capital Analysis

AA -  USA Stock  

USD 38.96  1.90  5.13%

Alcoa Corp financial indicator trend analysis is way more than just evaluating Alcoa Corp prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Alcoa Corp is a good investment. Please check the relationship between Alcoa Corp Enterprise Value and its Invested Capital accounts. Please continue to Trending Equities.

Enterprise Value vs Invested Capital

Accounts Relationship

Enterprise Value vs Invested Capital

Significance: Weak Contrarian Relationship

Enterprise Value diversification synergy
Overlapping area represents amount of trend that can be explained by analyzing historical patterns of Alcoa Corp Enterprise Value account and Invested Capital

Correlation Coefficient

-0.08
Relationship DirectionNegative 
Relationship StrengthInsignificant

Enterprise Value

Enterprise Value (or EV) is usually referred to as Alcoa Corp theoretical takeover price. In the event of an acquisition, an acquirer would have to take on Alcoa Corp debt, but would also pocket its cash. Enterprise Value is more accurate representation of Alcoa Corp value than its market capitalization because it takes into account all of Alcoa Corp 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 Alcoa Corp. There are two different methods for calculating Alcoa Corp invested capital: operating approach and financing approach. Understanding Alcoa Corp 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 [ROIC]; 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.
Most indicators from Alcoa Corp fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Alcoa Corp current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Please continue to Trending Equities.Alcoa Corp Selling General and Administrative Expense is projected to decrease significantly based on the last few years of reporting. The past year's Selling General and Administrative Expense was at 206 Million. The current year Issuance Purchase of Equity Shares is expected to grow to about 1 M, whereas Net Cash Flow Business Acquisitions and Disposals is forecasted to decline to about 167.9 M.
 2018 2019 2020 2021 (projected)
Interest Expense122 M121 M146 M162.11 M
Gross Profit3.35 B1.9 B1.32 B1.59 B

Alcoa Corp fundamental ratios Correlations

0.330.490.140.160.04-0.140.03-0.10.030.060.230.890.170.17-0.040.1-0.060.540.130.290.250.18
0.330.580.220.310.050.170.130.00.13-0.180.420.340.10.10.370.680.320.630.050.980.030.48
0.490.580.66-0.010.51-0.28-0.360.46-0.360.360.30.440.590.59-0.110.59-0.190.920.550.60.650.44
0.140.220.66-0.680.97-0.81-0.860.95-0.860.870.62-0.090.980.98-0.7-0.04-0.740.780.970.130.90.57
0.160.31-0.01-0.68-0.830.930.91-0.820.91-0.86-0.670.42-0.76-0.760.890.680.88-0.19-0.810.41-0.59-0.37
0.040.050.510.97-0.83-0.91-0.940.98-0.950.940.66-0.20.980.98-0.82-0.23-0.850.640.99-0.040.880.54
-0.140.17-0.28-0.810.93-0.910.93-0.850.93-0.95-0.670.09-0.9-0.90.930.540.94-0.42-0.920.26-0.76-0.46
0.030.13-0.36-0.860.91-0.940.93-0.91.0-0.96-0.670.24-0.93-0.930.920.430.93-0.49-0.930.21-0.73-0.6
-0.10.00.460.95-0.820.98-0.85-0.9-0.90.890.57-0.350.930.93-0.75-0.2-0.780.580.97-0.090.890.41
0.030.13-0.36-0.860.91-0.950.931.0-0.9-0.96-0.670.25-0.93-0.930.920.430.93-0.49-0.930.21-0.74-0.59
0.06-0.180.360.87-0.860.94-0.95-0.960.89-0.960.55-0.120.950.95-0.95-0.44-0.970.470.94-0.260.790.55
0.230.420.30.62-0.670.66-0.67-0.670.57-0.670.55-0.030.630.63-0.52-0.27-0.530.560.640.280.390.71
0.890.340.44-0.090.42-0.20.090.24-0.350.25-0.12-0.03-0.04-0.040.140.290.120.34-0.110.390.010.15
0.170.10.590.98-0.760.98-0.9-0.930.93-0.930.950.63-0.041.0-0.82-0.19-0.860.70.990.010.880.61
0.170.10.590.98-0.760.98-0.9-0.930.93-0.930.950.63-0.041.0-0.82-0.19-0.860.70.990.010.880.61
-0.040.37-0.11-0.70.89-0.820.930.92-0.750.92-0.95-0.520.14-0.82-0.820.671.0-0.25-0.810.46-0.62-0.5
0.10.680.59-0.040.68-0.230.540.43-0.20.43-0.44-0.270.29-0.19-0.190.670.610.39-0.220.79-0.03-0.01
-0.060.32-0.19-0.740.88-0.850.940.93-0.780.93-0.97-0.530.12-0.86-0.861.00.61-0.31-0.850.41-0.65-0.53
0.540.630.920.78-0.190.64-0.42-0.490.58-0.490.470.560.340.70.7-0.250.39-0.310.670.560.710.56
0.130.050.550.97-0.810.99-0.92-0.930.97-0.930.940.64-0.110.990.99-0.81-0.22-0.850.67-0.030.910.51
0.290.980.60.130.41-0.040.260.21-0.090.21-0.260.280.390.010.010.460.790.410.56-0.03-0.030.41
0.250.030.650.9-0.590.88-0.76-0.730.89-0.740.790.390.010.880.88-0.62-0.03-0.650.710.91-0.030.21
0.180.480.440.57-0.370.54-0.46-0.60.41-0.590.550.710.150.610.61-0.5-0.01-0.530.560.510.410.21
Click cells to compare fundamentals

Alcoa Corp Account Relationship Matchups

Alcoa Corp fundamental ratios Accounts

201620172018201920202021 (projected)
Inventories1.17 B1.16 B1.45 B1.64 B1.4 B1.34 B
Receivables834 M1.04 B1 B660 M556 M612.15 M
Accounts Payable1.46 B1.9 B1.66 B1.48 B1.4 B1.65 B
Accumulated Other Comprehensive Income(3.77 B)(5.18 B)(4.57 B)(4.97 B)(5.63 B)(6.07 B)
Total Assets16.74 B17.45 B16.13 B14.63 B14.86 B14.73 B
Current Assets3.18 B4.24 B4.33 B3.53 B4.52 B4.47 B
Assets Non Current13.56 B13.21 B11.8 B11.1 B10.34 B10.83 B
Cash and Equivalents853 M1.36 B1.11 B879 M1.61 B1.39 B
Cash and Equivalents USD853 M1.36 B1.11 B879 M1.61 B1.39 B
Total Debt1.45 B1.4 B1.8 B1.8 B2.46 B2.08 B
Debt Current18 M21 M16 M1,000 K2 M2.05 M
Debt Non Current1.42 B1.39 B1.8 B1.8 B2.46 B2.07 B
Total Debt USD1.45 B1.4 B1.8 B1.8 B2.46 B2.08 B
Shareholders Equity5.65 B4.52 B5.62 B4.11 B3.31 B4.34 B
Shareholders Equity USD5.65 B4.52 B5.62 B4.11 B3.31 B4.34 B
Inventory1.16 B1.45 B1.82 B1.64 B1.4 B1.58 B
Investments1.36 B1.41 B1.36 B1.11 B1.05 B1.13 B
Investments Non Current1.36 B1.41 B1.36 B1.11 B1.05 B1.13 B
Total Liabilities9.04 B10.65 B8.54 B8.74 B9.84 B9.92 B
Current Liabilities2.82 B3.25 B2.92 B2.56 B2.76 B3.06 B
Liabilities Non Current6.22 B7.4 B5.62 B6.18 B7.08 B6.86 B
Trade and Non Trade Payables1.46 B1.9 B1.66 B1.48 B1.4 B1.4 B
Property Plant and Equipment Net9.32 B9.14 B8.33 B7.92 B7.19 B7.55 B
Trade and Non Trade Receivables834 M1.04 B1 B660 M556 M731.97 M
Tax Assets741 M814 M560 M642 M655 M649.46 M
Tax Liabilities457 M591 M727 M380 M300 M378.29 M

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Our tools can tell you how much better you can do entering a position in Alcoa Corp without increasing your portfolio risk or giving up expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate.risk-adjusted returns of your individual positions relative to your overall portfolio.

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Pair Trading with Alcoa Corp

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Alcoa Corp position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Alcoa Corp will appreciate offsetting losses from the drop in the long position's value.

Alcoa Corp Pair Correlation

Equities Pair Trading Analysis

Please continue to Trending Equities. Note that the Alcoa Corp information on this page should be used as a complementary analysis to other Alcoa Corp's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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The market value of Alcoa Corp is measured differently than its book value, which is the value of Alcoa that is recorded on the company's balance sheet. Investors also form their own opinion of Alcoa Corp's value that differs from its market value or its book value, called intrinsic value, which is Alcoa Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Alcoa Corp's market value can be influenced by many factors that don't directly affect Alcoa Corp underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Alcoa Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine Alcoa Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Alcoa Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.