Alcoa Enterprise Value vs Tangible Asset Value Analysis

    Enterprise Value vs Tangible Asset Value

    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.

    Tangible Asset Value

    The value of tangibles assets calculated as the difference between Total Assets and Goodwill and Intangible Assets.

    Accounts Relationship

    Enterprise Value vs Tangible Asset Value

    Significance: Very Week Relationship

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

    Correlation Coefficient

    0.25
    Relationship DirectionPositive 
    Relationship StrengthVery Weak