CVS Health Enterprise Value vs Earnings before Tax Analysis

CVS -- USA Stock  

Earnings Report: February 19, 2020  

CVS Health financial indicator trend analysis is way more than just evaluating CVS Health prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether CVS Health is a good investment. Please check the relationship between CVS Health Enterprise Value and its Earnings before Tax accounts. Check also Trending Equities.

Enterprise Value vs Earnings before Tax

Accounts Relationship

Enterprise Value vs Earnings before Tax

Significance: Almost Identical Trend

Enterprise Value diversification synergy
Overlapping area represents amount of trend that can be explained by analyzing historical patterns of CVS Health Enterprise Value account and Earnings before Tax

Correlation Coefficient

0.95
Relationship DirectionPositive 
Relationship StrengthVery Strong

Enterprise Value

Enterprise Value (or EV) is usually referred to as CVS Health theoretical takeover price. In the event of an acquisition, an acquirer would have to take on CVS Health debt, but would also pocket its cash. Enterprise Value is more accurate representation of CVS Health value than its market capitalization because it takes into account all of CVS Health Corporation existing debt. Enterprise value is a measure of the value of a business as a whole; calculated as [MarketCap] plus [DebtUSD] minus [CashnEqUSD].

Earnings before Tax

Earnings Before Tax is calculated by adding [TaxExp] back to [NetInc].
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