Post Merger Share Price of Acquirer Formula

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Post Merger Share Price of Acquirer measures the number of shares the acquiring company has to issue for each share of the target firm. Check FAQs
PMSPA=APRAPE
PMSPA - Post Merger Share Price of Acquirer?APR - Acquirer Pre Merger PE Ratio?APE - Acquirer Post Merger Eps?

Post Merger Share Price of Acquirer Example

With values
With units
Only example

Here is how the Post Merger Share Price of Acquirer equation looks like with Values.

Here is how the Post Merger Share Price of Acquirer equation looks like with Units.

Here is how the Post Merger Share Price of Acquirer equation looks like.

1.995Edit=1.5Edit1.33Edit
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Post Merger Share Price of Acquirer Solution

Follow our step by step solution on how to calculate Post Merger Share Price of Acquirer?

FIRST Step Consider the formula
PMSPA=APRAPE
Next Step Substitute values of Variables
PMSPA=1.51.33
Next Step Prepare to Evaluate
PMSPA=1.51.33
LAST Step Evaluate
PMSPA=1.995

Post Merger Share Price of Acquirer Formula Elements

Variables
Post Merger Share Price of Acquirer
Post Merger Share Price of Acquirer measures the number of shares the acquiring company has to issue for each share of the target firm.
Symbol: PMSPA
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Acquirer Pre Merger PE Ratio
Acquirer Pre Merger PE Ratio is a financial metric that indicates the valuation of the acquirer stock relative to its earnings before the merger or acquisition takes place.
Symbol: APR
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Acquirer Post Merger Eps
Acquirer Post Merger Eps involves incorporating the financial impact of the merger or acquisition into its earnings figures.
Symbol: APE
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.

Other formulas in Mergers and Acquisitions category

​Go Accretion Amount
AA=((PB)(YTMAPPY))-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 Share Price of Acquirer?

Post Merger Share Price of Acquirer evaluator uses Post Merger Share Price of Acquirer = Acquirer Pre Merger PE Ratio*Acquirer Post Merger Eps to evaluate the Post Merger Share Price of Acquirer, Post Merger Share Price of Acquirer is the total number of shares belonging to the acquiring company which it has to issue for each share of the targeted company. Post Merger Share Price of Acquirer is denoted by PMSPA symbol.

How to evaluate Post Merger Share Price of Acquirer using this online evaluator? To use this online evaluator for Post Merger Share Price of Acquirer, enter Acquirer Pre Merger PE Ratio (APR) & Acquirer Post Merger Eps (APE) and hit the calculate button.

FAQs on Post Merger Share Price of Acquirer

What is the formula to find Post Merger Share Price of Acquirer?
The formula of Post Merger Share Price of Acquirer is expressed as Post Merger Share Price of Acquirer = Acquirer Pre Merger PE Ratio*Acquirer Post Merger Eps. Here is an example- 1.995 = 1.5*1.33.
How to calculate Post Merger Share Price of Acquirer?
With Acquirer Pre Merger PE Ratio (APR) & Acquirer Post Merger Eps (APE) we can find Post Merger Share Price of Acquirer using the formula - Post Merger Share Price of Acquirer = Acquirer Pre Merger PE Ratio*Acquirer Post Merger Eps.
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