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Post Merger PE Formula

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Post Merger Pe refers to the price to earnings ratio of a company after it has undergone a merger or acquisition. Check FAQs

PMP = WAEA + WAET

PMP - Post Merger Pe?WAEA - Weighted Average Eps of Acquirer?WAET - Weighted Average Eps of Target?

Post Merger PE Example

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Here is how the Post Merger PE equation looks like with Values.

Here is how the Post Merger PE equation looks like with Units.

Here is how the Post Merger PE equation looks like.

4.2 = 1.3 + 2.9

4.2 = 1.3 + 2.9

4.2 = 1.3 + 2.9

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Post Merger PE Solution

Follow our step by step solution on how to calculate Post Merger PE?

FIRST Step Consider the formula

PMP = WAEA + WAET

Next Step Substitute values of Variables

∴

PMP = 1.3 + 2.9

Next Step Prepare to Evaluate

∴

PMP = 1.3 + 2.9

LAST Step Evaluate

∴

PMP = 4.2

Post Merger PE Formula Elements

Variables

Post Merger Pe

Post Merger Pe refers to the price to earnings ratio of a company after it has undergone a merger or acquisition.

Symbol: PMP

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Post Merger Pe

Weighted Average Eps of Acquirer

Weighted Average Eps of Acquirer reflects the combined earnings per share of the acquirer and the target, adjusted for their respective sizes in the post-merger entity.

Symbol: WAEA

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Weighted Average Eps of Acquirer

Weighted Average Eps of Target

Weighted Average Eps of Target provides a weighted average Eps that reflects the combined earnings per share of the target and the acquirer.

Symbol: WAET

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Weighted Average Eps of Target

Other formulas in Mergers and Acquisitions category

Go Accretion Amount

AA = ((PB) \cdot (\frac{YTM}{APPY})) - CI

Go Takeover Premium

TPM = PT - VT

Go Gain of Acquirer

GAQ = S - (PT - VT)

Go Post Merger Value of Merged Company

PMV = PVA + VT + S - C

How to Evaluate Post Merger PE?

Post Merger PE evaluator uses Post Merger Pe = Weighted Average Eps of Acquirer+Weighted Average Eps of Target to evaluate the Post Merger Pe, Post Merger PE refers to the price to earnings ratio of a company after it has completed a merger or acquisition. Post Merger Pe is denoted by PMP symbol.

How to evaluate Post Merger PE using this online evaluator? To use this online evaluator for Post Merger PE, enter Weighted Average Eps of Acquirer (WAEA) & Weighted Average Eps of Target (WAET) and hit the calculate button.

FAQs on Post Merger PE

What is the formula to find Post Merger PE?

The formula of Post Merger PE is expressed as Post Merger Pe = Weighted Average Eps of Acquirer+Weighted Average Eps of Target. Here is an example- 1052.9 = 1.3+2.9.

How to calculate Post Merger PE?

With Weighted Average Eps of Acquirer (WAEA) & Weighted Average Eps of Target (WAET) we can find Post Merger PE using the formula - Post Merger Pe = Weighted Average Eps of Acquirer+Weighted Average Eps of Target.

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Post Merger PE Formula

Post Merger PE Example

Post Merger PE Solution

Post Merger PE Formula Elements

Other formulas in Mergers and Acquisitions category

How to Evaluate Post Merger PE?

FAQs on Post Merger PE

Variable Name