Conversion Value Calculator

✖Market Price per Share is simply the dollar amount that investors are willing to pay for one share of the company's stock.ⓘ Market Price per Share [P]			+10% -10%
✖Conversion Ratio is calculated by dividing the par value of the convertible bond by the conversion price.ⓘ Conversion Ratio [CR]			+10% -10%

✖Conversion Value is the amount an investor would receive if a convertible security were changed into common stock.ⓘ Conversion Value [CV]

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Formula

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Conversion Value

Formula

`"CV" = "P"*"CR"`

Example

`"100"="50"*"2"`

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Conversion Value Solution

STEP 0: Pre-Calculation Summary

Formula Used

Conversion Value = Market Price per Share*Conversion Ratio
CV = P*CR
This formula uses 3 Variables

Variables Used

Conversion Value - Conversion Value is the amount an investor would receive if a convertible security were changed into common stock.
Market Price per Share - Market Price per Share is simply the dollar amount that investors are willing to pay for one share of the company's stock.
Conversion Ratio - Conversion Ratio is calculated by dividing the par value of the convertible bond by the conversion price.

STEP 1: Convert Input(s) to Base Unit

Market Price per Share: 50 --> No Conversion Required
Conversion Ratio: 2 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

CV = P*CR --> 50*2

Evaluating ... ...

CV = 100

STEP 3: Convert Result to Output's Unit

100 --> No Conversion Required

FINAL ANSWER

100 <-- Conversion Value

(Calculation completed in 00.004 seconds)

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Credits

Created by Keerthika Bathula

Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

Keerthika Bathula has created this Calculator and 50+ more calculators!

Verified by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has verified this Calculator and 200+ more calculators!

< 14 Fixed Income Securities Calculators

Accrued Interest

Go Accrued Interest = (Face Value*Total Annual Coupon Rate*Days since Last Payment Date)/(Number of Coupon Payments per Year*Accrual Period)

Conversion Premium

Go Conversion Premium = Conversion Value-Market Price of Convertible Bond

Conversion Ratio

Go Conversion Ratio = Par Value at Maturity/Conversion Price of Equity

Convexity Adjustment

Go Convexity Adjustment = Bond's Convexity*(Change of Yield^2)*100

Callable Bond Price

Go Callable Bond Price = Non Callable Bond Price-Call Option Price

Nominal Yield

Go Nominal Yield = (Total Annual Interest Payments/Face Value)*100

Expected Loss

Go Expected Loss = Default Probability*Loss Severity given Default

Putable Bond Price

Go Putable Bond Price = Non Putable Bond Price+Put Option Price

Conversion Value

Go Conversion Value = Market Price per Share*Conversion Ratio

Floating Interest Rate

Go Floating Interest Rate = Reference Rate+Fixed Spread

Dirty Price

Go Dirty Price = Clean Price+Accrued Interest

Clean Price

Go Clean Price = Dirty Price-Accrued Interest

Semi Annual Bond Equivalent Yield

Go Semi Annual Bond Equivalent Yield = Yield per Semi Annual Period*2

Loss Severity

Go Loss severity = 1-Recovery Rate

Conversion Value Formula

Conversion Value = Market Price per Share*Conversion Ratio
CV = P*CR

What is Conversion Value?

The term conversion value refers to the financial worth of the securities obtained by exchanging a convertible security for its underlying assets. Convertibles are a category of financial instruments, such as convertible bonds and preferred shares, which can be exchanged for an underlying asset, such as common stock.

How to Calculate Conversion Value?

Conversion Value calculator uses Conversion Value = Market Price per Share*Conversion Ratio to calculate the Conversion Value, The Conversion Value is the amount an investor would receive if a convertible security were changed into common stock. Conversion Value is denoted by CV symbol.

How to calculate Conversion Value using this online calculator? To use this online calculator for Conversion Value, enter Market Price per Share (P) & Conversion Ratio (CR) and hit the calculate button. Here is how the Conversion Value calculation can be explained with given input values -> 100 = 50*2.

FAQ

What is Conversion Value?

The Conversion Value is the amount an investor would receive if a convertible security were changed into common stock and is represented as CV = P*CR or Conversion Value = Market Price per Share*Conversion Ratio. Market Price per Share is simply the dollar amount that investors are willing to pay for one share of the company's stock & Conversion Ratio is calculated by dividing the par value of the convertible bond by the conversion price.

How to calculate Conversion Value?

The Conversion Value is the amount an investor would receive if a convertible security were changed into common stock is calculated using Conversion Value = Market Price per Share*Conversion Ratio. To calculate Conversion Value, you need Market Price per Share (P) & Conversion Ratio (CR). With our tool, you need to enter the respective value for Market Price per Share & Conversion Ratio and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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