Meritage Homes Invested Capital vs Enterprise Value Analysis

MTH -- USA Stock  

USD 68.12  2.53  3.58%

Meritage Homes financial indicator trend analysis is infinitely more than just investigating Meritage Homes recent accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Meritage Homes is a good investment. Please check the relationship between Meritage Homes Invested Capital and its Enterprise Value accounts. Please see also Stocks Correlation.

Invested Capital vs Enterprise Value

Accounts Relationship

Invested Capital vs Enterprise Value

Significance: Strong Relationship

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

Correlation Coefficient

Relationship DirectionPositive 
Relationship StrengthSignificant

Invested Capital

Invested capital represents the total cash investment that shareholders and debt holders have contributed to Meritage Homes Corporation. There are two different methods for calculating Meritage Homes invested capital: operating approach and financing approach. Understanding ##company1# 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 Return on Invested Capital; and is calculated as: [Debt] plus [Assets] minus [Intangibles] minus [CashnEq] minus [LiabilitiesC]. Please note this calculation method is subject to change.

Enterprise Value

Enterprise 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].