What do you mean by Post Merger Share Price of Acquirer ?
Post Merger Share Price of Acquirer is a measuring tool to calculate the number of shares of the acquiring company which it has to issue per share of the target firm. If the merger or acquisition is perceived as strategically beneficial and is expected to create synergies, the market may respond positively, potentially leading to an increase in the acquirer's share price. The financial performance of the combined entity following the merger can impact the acquirer's share price. If the merger results in improved financial metrics, such as increased revenue, earnings, or cash flow, it could contribute to a higher share price. Market sentiment plays a crucial role in determining the post-merger share price of the acquiring company. Positive fluctuations regarding the merger, industry conditions, or overall market trends can impact the share price higher, while negative fluctuations can have the opposite effect.
How to Calculate Post Merger Share Price of Acquirer?
Post Merger Share Price of Acquirer calculator uses Post Merger Share Price of Acquirer = Acquirer Pre Merger PE Ratio*Acquirer Post Merger Eps to calculate 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 calculate Post Merger Share Price of Acquirer using this online calculator? To use this online calculator for Post Merger Share Price of Acquirer, enter Acquirer Pre Merger PE Ratio (APR) & Acquirer Post Merger Eps (APE) and hit the calculate button. Here is how the Post Merger Share Price of Acquirer calculation can be explained with given input values -> 1.995 = 1.5*1.33.