Share Exchange Ratio Calculator

✖Offer Price for Target's Share is the price at which an acquiring company proposes to purchase the outstanding shares of the target company during a merger or acquisition.ⓘ Offer Price for Target's Share [OPTS]			+10% -10%
✖Acquirer's Share Price is the current market value of a single share of the acquiring company's stock in a merger or acquisition context.ⓘ Acquirer's Share Price [ASP]			+10% -10%

✖Exchange Ratio measures the number of shares the acquiring company has to issue for each individual share of the target firm.ⓘ Share Exchange Ratio [ER]

⎘ Copy

👎

Formula

✖

Share Exchange Ratio

Formula

`"ER" = "OPTS"/"ASP"`

Example

`"1.834043"="21.55"/"11.75"`

Calculator

LaTeX

Reset

👍

Download Financial Formula PDF PDF Image

Share Exchange Ratio Solution

STEP 0: Pre-Calculation Summary

Formula Used

Exchange Ratio = Offer Price for Target's Share/Acquirer's Share Price
ER = OPTS/ASP
This formula uses 3 Variables

Variables Used

Exchange Ratio - Exchange Ratio measures the number of shares the acquiring company has to issue for each individual share of the target firm.
Offer Price for Target's Share - Offer Price for Target's Share is the price at which an acquiring company proposes to purchase the outstanding shares of the target company during a merger or acquisition.
Acquirer's Share Price - Acquirer's Share Price is the current market value of a single share of the acquiring company's stock in a merger or acquisition context.

STEP 1: Convert Input(s) to Base Unit

Offer Price for Target's Share: 21.55 --> No Conversion Required
Acquirer's Share Price: 11.75 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

ER = OPTS/ASP --> 21.55/11.75

Evaluating ... ...

ER = 1.83404255319149

STEP 3: Convert Result to Output's Unit

1.83404255319149 --> No Conversion Required

FINAL ANSWER

1.83404255319149 ≈ 1.834043 <-- Exchange Ratio

(Calculation completed in 00.020 seconds)

You are here -

Home » Financial » Strategic Financial Management » Share Exchange Ratio

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 Nayana Phulphagar

Institute of Chartered and Financial Analysts of India National college (ICFAI National College), HUBLI

Nayana Phulphagar has verified this Calculator and 1500+ more calculators!

< 24 Strategic Financial Management Calculators

Money Market Discount Rate

Go Money Market Discount Rate = (Year/Days of Maturity)*(Face Value of Money Market Instrument-Present Value of Money Market Instrument)/Face Value of Money Market Instrument

Effective Convexity

Go Effective Convexity = (Price of Bond When Yield is Decreased+Price of Bond When Yield is Increased-(2*Initial Price of Bond))/((Change in Curve)^2*Initial Price of Bond)

Add on Rate

Go Add on Rate = ((Year/Days)*((Amount Paid at Maturity Including Interest)-Present Value of Money Market Instrument)/(Amount Paid at Maturity Including Interest))

Cost of Equity including Flotation Costs

Go Cost of Equity with flotation costs = ((Dividend in Next Period/(Current Share Price*(1-(Flotation Costs Percentage*0.01))))+(Dividend Growth Rate*0.01))*100

Approximate Modified Duration

Go Approximate Modified Duration = ((Price of Bond When Yield is Decreased)-(Price of Bond When Yield is Increased))/(2*Change in Yield*Initial Price of Bond)

Effective Duration

Go Effective Duration = ((Price of Bond When Yield is Decreased)-(Price of Bond When Yield is Increased))/(2*Change in Curve*Initial Price of Bond)

Change in Price of Full Bond

Go Percentage Change in Price of Bond = (-Annual Modified Duration*Change in Yield)+(1/2*Annual Convexity*(Change in Yield)^2)

Value of Right using New Shares

Go Value of Right = Number of New Shares*(Market Price-Issue Price of New Share)/Total Number of All Shares

Single Month Mortality

Go Single Month Morality = Prepayment for a Month/(Beginning Mortgage Balance for Month-Scheduled Principal Repayment for Month)

Value of Right

Go Value of Right per Share = (Stock Price-Right Subscription Price)/Number of Rights to Buy a Share

Cost of Equity

Go Cost of Equity = ((Dividend in Next Period/Current Share Price)+(Dividend Growth Rate*0.01))*100

Unlevered Beta

Go Unlevered Beta = Levered Beta/(1+((1-Tax Rate)*(Debt/Equity)))

Levered Beta

Go Levered Beta = Unlevered Beta*(1+((1-Tax Rate)*(Debt/Equity)))

Price Value of Basis Point

Go Price Value of Basis Point = (Price of Bond When Yield is Decreased-Price of Bond When Yield is Increased)/2

Price of Bond

Go Price of Bond = Face Value*(1+Implied Discount Rate)^Holding Period

Approximate Macaulay Duration

Go Approximate Macaulay Duration = Approximate Modified Duration*(1+Rate of Interest)

Periodicity of Annual Rate

Go Periodicity of Annual Rate = Number of Days in a Year/Number of Days to Maturity

Conversion Parity Price

Go Conversion Parity Price = Value of Convertible Security/Conversion Ratio

Share Exchange Ratio

Go Exchange Ratio = Offer Price for Target's Share/Acquirer's Share Price

Money Duration

Go Money Duration = Annual Modified Duration*Price Value at Full Rate

Earnings Yield

Go Earnings Yield = (Earnings per Share/Market Price per Share)*100

Dividend Yield

Go Dividend Yield = (Dividend per Share/Market Price per Share)*100

Dividend Rate

Go Dividend Rate = (Dividend per Share/Current Share Price)*100

Earnings Yield using PE Ratio

Go Earnings Yield = (1/Price-Earnings (PE) Ratio)*100

Share Exchange Ratio Formula

Exchange Ratio = Offer Price for Target's Share/Acquirer's Share Price
ER = OPTS/ASP

What is Share Exchange Ratio ?

The share exchange ratio is a fundamental aspect of mergers and acquisitions, representing the ratio at which shares of the acquiring company will be exchanged for shares of the target company during the merger process. It essentially quantifies the relationship between the two companies' shares, with a higher ratio indicating a more favorable deal for the target company's shareholders, as they receive a greater number of shares in the acquiring company for each of their shares in the target company, and vice versa for a lower ratio. This ratio is carefully determined based on financial evaluations, market conditions, and negotiations, playing a pivotal role in shaping the ownership structure and value proposition of the combined entity post-merger.

How to Calculate Share Exchange Ratio?

Share Exchange Ratio calculator uses Exchange Ratio = Offer Price for Target's Share/Acquirer's Share Price to calculate the Exchange Ratio, The Share Exchange Ratio represents the number of shares of the acquiring company offered in exchange for each share of the target company during a merger or acquisition. Exchange Ratio is denoted by ER symbol.

How to calculate Share Exchange Ratio using this online calculator? To use this online calculator for Share Exchange Ratio, enter Offer Price for Target's Share (OPTS) & Acquirer's Share Price (ASP) and hit the calculate button. Here is how the Share Exchange Ratio calculation can be explained with given input values -> 1.834043 = 21.55/11.75.

FAQ

What is Share Exchange Ratio?

The Share Exchange Ratio represents the number of shares of the acquiring company offered in exchange for each share of the target company during a merger or acquisition and is represented as ER = OPTS/ASP or Exchange Ratio = Offer Price for Target's Share/Acquirer's Share Price. Offer Price for Target's Share is the price at which an acquiring company proposes to purchase the outstanding shares of the target company during a merger or acquisition & Acquirer's Share Price is the current market value of a single share of the acquiring company's stock in a merger or acquisition context.

How to calculate Share Exchange Ratio?

The Share Exchange Ratio represents the number of shares of the acquiring company offered in exchange for each share of the target company during a merger or acquisition is calculated using Exchange Ratio = Offer Price for Target's Share/Acquirer's Share Price. To calculate Share Exchange Ratio, you need Offer Price for Target's Share (OPTS) & Acquirer's Share Price (ASP). With our tool, you need to enter the respective value for Offer Price for Target's Share & Acquirer's Share Price and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

Home

FREE PDFs

🔍 Search