Conversion Value Solution

STEP 0: Pre-Calculation Summary
Formula Used
Conversion Value = Market Price per Share*Conversion Ratio
CV = P*CR
This formula uses 3 Variables
Variables Used
Conversion Value - Conversion Value is the amount an investor would receive if a convertible security were changed into common stock.
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.
Conversion Ratio - Conversion Ratio is calculated by dividing the par value of the convertible bond by the conversion price.
STEP 1: Convert Input(s) to Base Unit
Market Price per Share: 50 --> No Conversion Required
Conversion Ratio: 2 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
CV = P*CR --> 50*2
Evaluating ... ...
CV = 100
STEP 3: Convert Result to Output's Unit
100 --> No Conversion Required
FINAL ANSWER
100 <-- Conversion Value
(Calculation completed in 00.005 seconds)

Credits

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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!
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Verified by Vishnu K
BMS College of Engineering (BMSCE), Bangalore
Vishnu K has verified this Calculator and 200+ more calculators!

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 Value Formula

​LaTeX ​Go
Conversion Value = Market Price per Share*Conversion Ratio
CV = P*CR

What is Conversion Value?

The term conversion value refers to the financial worth of the securities obtained by exchanging a convertible security for its underlying assets. Convertibles are a category of financial instruments, such as convertible bonds and preferred shares, which can be exchanged for an underlying asset, such as common stock.

How to Calculate Conversion Value?

Conversion Value calculator uses Conversion Value = Market Price per Share*Conversion Ratio to calculate 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 calculate Conversion Value using this online calculator? To use this online calculator for Conversion Value, enter Market Price per Share (P) & Conversion Ratio (CR) and hit the calculate button. Here is how the Conversion Value calculation can be explained with given input values -> 100 = 50*2.

FAQ

What is Conversion Value?
The Conversion Value is the amount an investor would receive if a convertible security were changed into common stock and is represented as CV = P*CR or Conversion Value = Market Price per Share*Conversion Ratio. Market Price per Share is simply the dollar amount that investors are willing to pay for one share of the company's stock & Conversion Ratio is calculated by dividing the par value of the convertible bond by the conversion price.
How to calculate Conversion Value?
The Conversion Value is the amount an investor would receive if a convertible security were changed into common stock is calculated using Conversion Value = Market Price per Share*Conversion Ratio. To calculate Conversion Value, you need Market Price per Share (P) & Conversion Ratio (CR). With our tool, you need to enter the respective value for Market Price per Share & Conversion Ratio 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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