Alcoa 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 Alcoa theoretical takeover price. In the event of an acquisition, an acquirer would have to take on Alcoa Inc debt, but would also pocket its cash. Enterprise Value is more accurate representation of Alcoa value then its market capitalization because it takes into account all of Alcoa Inc 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: Weak Contrarian Relationship

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

    Correlation Coefficient

    -0.2
    Relationship DirectionNegative 
    Relationship StrengthInsignificant