Conversion Value Formula

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Conversion Value is the amount an investor would receive if a convertible security were changed into common stock. Check FAQs
CV=PCR
CV - Conversion Value?P - Market Price per Share?CR - Conversion Ratio?

Conversion Value Example

With values
With units
Only example

Here is how the Conversion Value equation looks like with Values.

Here is how the Conversion Value equation looks like with Units.

Here is how the Conversion Value equation looks like.

100Edit=50Edit2Edit
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Conversion Value Solution

Follow our step by step solution on how to calculate Conversion Value?

FIRST Step Consider the formula
CV=PCR
Next Step Substitute values of Variables
CV=502
Next Step Prepare to Evaluate
CV=502
LAST Step Evaluate
CV=100

Conversion Value Formula Elements

Variables
Conversion Value
Conversion Value is the amount an investor would receive if a convertible security were changed into common stock.
Symbol: CV
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
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.
Symbol: P
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Conversion Ratio
Conversion Ratio is calculated by dividing the par value of the convertible bond by the conversion price.
Symbol: CR
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.

Other formulas in Fixed Income Securities category

​Go Conversion Ratio
CR=PvmCPequity
​Go Conversion Premium
CP=CV-MPCB
​Go Floating Interest Rate
FIR=Rref+FS
​Go Convexity Adjustment
CA=BC(Δy2)100

How to Evaluate Conversion Value?

Conversion Value evaluator uses Conversion Value = Market Price per Share*Conversion Ratio to evaluate 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 evaluate Conversion Value using this online evaluator? To use this online evaluator for Conversion Value, enter Market Price per Share (P) & Conversion Ratio (CR) and hit the calculate button.

FAQs on Conversion Value

What is the formula to find Conversion Value?
The formula of Conversion Value is expressed as Conversion Value = Market Price per Share*Conversion Ratio. Here is an example- 100 = 50*2.
How to calculate Conversion Value?
With Market Price per Share (P) & Conversion Ratio (CR) we can find Conversion Value using the formula - Conversion Value = Market Price per Share*Conversion Ratio.
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