Post Merger EPS Calculator

✖Total Earnings of the Acquirer Post Merger refers to the combined earnings of the acquiring company and the acquired company after the merger or acquisition is completed.ⓘ Total Earnings of the Acquirer Post Merger [TEAP]			+10% -10%
✖Total Number of Shares of Acquirer refers to the number of shares outstanding of the acquirer before the merger or acquisition.ⓘ Total Number of Shares of Acquirer [TNSA]			+10% -10%

✖Post Merger Eps refers to the earnings per share of a company after it has undergone a merger or acquisition.ⓘ Post Merger EPS [PME]

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Formula

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Post Merger EPS

Formula

`"PME" = "TEAP"/"TNSA"`

Example

`"5.2"="520"/"100"`

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Post Merger EPS Solution

STEP 0: Pre-Calculation Summary

Formula Used

Post Merger Eps = Total Earnings of the Acquirer Post Merger/Total Number of Shares of Acquirer
PME = TEAP/TNSA
This formula uses 3 Variables

Variables Used

Post Merger Eps - Post Merger Eps refers to the earnings per share of a company after it has undergone a merger or acquisition.
Total Earnings of the Acquirer Post Merger - Total Earnings of the Acquirer Post Merger refers to the combined earnings of the acquiring company and the acquired company after the merger or acquisition is completed.
Total Number of Shares of Acquirer - Total Number of Shares of Acquirer refers to the number of shares outstanding of the acquirer before the merger or acquisition.

STEP 1: Convert Input(s) to Base Unit

Total Earnings of the Acquirer Post Merger: 520 --> No Conversion Required
Total Number of Shares of Acquirer: 100 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

PME = TEAP/TNSA --> 520/100

Evaluating ... ...

PME = 5.2

STEP 3: Convert Result to Output's Unit

5.2 --> No Conversion Required

FINAL ANSWER

5.2 <-- Post Merger Eps

(Calculation completed in 00.004 seconds)

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Credits

Created by Aashna

IGNOU (IGNOU), India

Aashna 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!

< 10+ Mergers and Acquisitions Calculators

Post Merger Value of Merged Company

Go Post Merger Value of Merged Company = Pre Merger Value of the Acquirer+Pre Merger Value of Target Company+Synergies Generated-Cash Paid to Shareholders

Goodwill

Go Goodwill = Consideration Paid+Fair Value of Non Controlling Interest+Fair Value of Equity Previous Interest-Fair Value of Net Assets Recognized

Accretion Amount

Go Accretion Amount = ((Purchase Basis)*(Yield to Maturity/Accrual Period Per Year))-Coupon Interest

Gain of Acquirer

Go Gain of the Acquirer = Synergies Generated-(Price Paid for Target Company-Pre Merger Value of Target Company)

Post Merger EPS

Go Post Merger Eps = Total Earnings of the Acquirer Post Merger/Total Number of Shares of Acquirer

Control Premium

Go Control Premium = (Takeover Price-Market Price)/Estimated Price

Post Merger Share Price of Acquirer

Go Post Merger Share Price of Acquirer = Acquirer Pre Merger PE Ratio*Acquirer Post Merger Eps

Takeover Premium

Go Takeover Premium = Price Paid for Target Company-Pre Merger Value of Target Company

Post Merger PE

Go Post Merger Pe = Weighted Average Eps of Acquirer+Weighted Average Eps of Target

Merger Arbitrage Spread

Go Merger Arbitrage Spread = Risk Premium+Risk Free Rate

Post Merger EPS Formula

Post Merger Eps = Total Earnings of the Acquirer Post Merger/Total Number of Shares of Acquirer
PME = TEAP/TNSA

What do you mean by Post Merger EPS ?

Post Merger EPS reflects the combined earnings of the merging or acquiring companies. This metric is important for investors and stakeholders as it provides insights into the profitability and earnings potential of the merged entity. Calculating the post merger EPS involves aggregating the earnings of both companies and adjusting for any changes in the number of outstanding shares resulting from the merger or acquisition. This adjusted EPS value helps investors understand how the merger or acquisition has impacted the company's profitability on a per share basis. A higher post merger EPS may indicate that the merger or acquisition has resulted in increased profitability and earnings growth potential for the combined entity. Conversely, a lower post merger EPS may suggest challenges in integrating the businesses or achieving anticipated synergies. Analyzing the post merger EPS can provide valuable insights into the financial performance and value creation potential of the mergers and acquisitions.

How to Calculate Post Merger EPS?

Post Merger EPS calculator uses Post Merger Eps = Total Earnings of the Acquirer Post Merger/Total Number of Shares of Acquirer to calculate the Post Merger Eps, Post Merger EPS represents the portion of a company's profit allocated to each outstanding share of common stock. Post Merger Eps is denoted by PME symbol.

How to calculate Post Merger EPS using this online calculator? To use this online calculator for Post Merger EPS, enter Total Earnings of the Acquirer Post Merger (TEAP) & Total Number of Shares of Acquirer (TNSA) and hit the calculate button. Here is how the Post Merger EPS calculation can be explained with given input values -> 5.2 = 520/100.

FAQ

What is Post Merger EPS?

Post Merger EPS represents the portion of a company's profit allocated to each outstanding share of common stock and is represented as PME = TEAP/TNSA or Post Merger Eps = Total Earnings of the Acquirer Post Merger/Total Number of Shares of Acquirer. Total Earnings of the Acquirer Post Merger refers to the combined earnings of the acquiring company and the acquired company after the merger or acquisition is completed & Total Number of Shares of Acquirer refers to the number of shares outstanding of the acquirer before the merger or acquisition.

How to calculate Post Merger EPS?

Post Merger EPS represents the portion of a company's profit allocated to each outstanding share of common stock is calculated using Post Merger Eps = Total Earnings of the Acquirer Post Merger/Total Number of Shares of Acquirer. To calculate Post Merger EPS, you need Total Earnings of the Acquirer Post Merger (TEAP) & Total Number of Shares of Acquirer (TNSA). With our tool, you need to enter the respective value for Total Earnings of the Acquirer Post Merger & Total Number of Shares of Acquirer 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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