Conversion Ratio Calculator

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✖Par Value at Maturity is the amount of money that the issuer promises to repay bondholders at the maturity date of the bond.ⓘ Par Value at Maturity [P_vm]			+10% -10%
✖Conversion Price of Equity is the price per share at which a convertible security, such as corporate bonds or preferred shares, can be converted into common stock.ⓘ Conversion Price of Equity [CP_equity]			+10% -10%

✖Conversion Ratio is calculated by dividing the par value of the convertible bond by the conversion price.ⓘ Conversion Ratio [CR]

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Conversion Ratio Solution

STEP 0: Pre-Calculation Summary

Formula Used

Conversion Ratio = Par Value at Maturity/Conversion Price of Equity
CR = P_vm/CP_equity
This formula uses 3 Variables

Variables Used

Conversion Ratio - Conversion Ratio is calculated by dividing the par value of the convertible bond by the conversion price.
Par Value at Maturity - Par Value at Maturity is the amount of money that the issuer promises to repay bondholders at the maturity date of the bond.
Conversion Price of Equity - Conversion Price of Equity is the price per share at which a convertible security, such as corporate bonds or preferred shares, can be converted into common stock.

STEP 1: Convert Input(s) to Base Unit

Par Value at Maturity: 1100 --> No Conversion Required
Conversion Price of Equity: 550 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

CR = P_vm/CP_equity --> 1100/550

Evaluating ... ...

CR = 2

STEP 3: Convert Result to Output's Unit

2 --> No Conversion Required

FINAL ANSWER

2 <-- Conversion Ratio

(Calculation completed in 00.005 seconds)

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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 100+ more calculators!

Verified by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

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< Fixed Income Securities Calculators

Conversion Premium

LaTeX Go Conversion Premium = Conversion Value-Market Price of Convertible Bond

Conversion Ratio

LaTeX Go Conversion Ratio = Par Value at Maturity/Conversion Price of Equity

Conversion Value

LaTeX Go Conversion Value = Market Price per Share*Conversion Ratio

Floating Interest Rate

LaTeX Go Floating Interest Rate = Reference Rate+Fixed Spread

Conversion Ratio Formula

LaTeX Go

Conversion Ratio = Par Value at Maturity/Conversion Price of Equity
CR = P_vm/CP_equity

What is Conversion Ratio?

The conversion ratio is the number of common shares received at the time of conversion for each convertible security. The higher the ratio, the higher the number of common shares exchanged per convertible security. The conversion ratio is determined at the time the convertible security is issued and has an impact on the relative price of the security. The ratio is calculated by dividing the convertible security's par value by the conversion price of equity.

How to Calculate Conversion Ratio?

Conversion Ratio calculator uses Conversion Ratio = Par Value at Maturity/Conversion Price of Equity to calculate the Conversion Ratio, The Conversion Ratio is the number of common shares received at the time of conversion for each convertible security. Conversion Ratio is denoted by CR symbol.

How to calculate Conversion Ratio using this online calculator? To use this online calculator for Conversion Ratio, enter Par Value at Maturity (P_vm) & Conversion Price of Equity (CP_equity) and hit the calculate button. Here is how the Conversion Ratio calculation can be explained with given input values -> 2.2 = 1100/conversion_price.

FAQ

What is Conversion Ratio?

The Conversion Ratio is the number of common shares received at the time of conversion for each convertible security and is represented as CR = P_vm/CP_equity or Conversion Ratio = Par Value at Maturity/Conversion Price of Equity. Par Value at Maturity is the amount of money that the issuer promises to repay bondholders at the maturity date of the bond & Conversion Price of Equity is the price per share at which a convertible security, such as corporate bonds or preferred shares, can be converted into common stock.

How to calculate Conversion Ratio?

The Conversion Ratio is the number of common shares received at the time of conversion for each convertible security is calculated using Conversion Ratio = Par Value at Maturity/Conversion Price of Equity. To calculate Conversion Ratio, you need Par Value at Maturity (P_vm) & Conversion Price of Equity (CP_equity). With our tool, you need to enter the respective value for Par Value at Maturity & Conversion Price of Equity 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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