Some fundamental drivers such as market cap or Meritage Homes enterprice value can be analyzed from historical prospective to project value of the company into the future. Some investors analyze Meritage Homes valuation indicators such as Earnings Before Interest Taxes and Depreciation Amortization EBITDA of 300.1 M or Earnings before Tax of 47.4 M to time the market or to short-sell their positions based on the trend in valuation ratios. It is a perfect tool to project the direction of Meritage Homes future value. Financial Statement Analysis is much more than just reviewing and breaking down Meritage Homes prevalent accounting reports in order to predict its past. Macroaxis encourages investors to analyze financial statement over time for various trends across multiple indicators and accounts to determine whether Meritage Homes is a good buy for the upcoming year. Please see also Stocks Correlation.
Average EquityAverage equity value for the period used in calculation of Return on Average Equity; derived from [Equity].
Enterprise ValueEnterprise Value (or EV) is usually referred to as Meritage Homes theoretical takeover price. In the event of an acquisition, an acquirer would have to take on Meritage Homes debt, but would also pocket its cash. Enterprise Value is more accurate representation of Meritage Homes value than its market capitalization because it takes into account all of Meritage Homes Corporation existing debt. Enterprise value is a measure of the value of a business as a whole; calculated as [MarketCap] plus [DebtUSD] minus [CashnEqUSD].
Market CapitalizationMarket capitalization (or market cap) is the total value of the shares outstanding of Meritage Homes Corporation. It is equal to Meritage Homes current share price times the number of Meritage Homes outstanding shares. Represents the product of [SharesBas]; [Price] and [ShareFactor].