Home
Back
Post Merger EPS Formula:
| From: | To: |
Post Merger EPS refers to the earnings per share of a company after it has undergone a merger or acquisition. It represents the combined earnings of the acquiring company and the acquired company divided by the total number of shares outstanding of the acquirer.
The calculator uses the Post Merger EPS formula:
Where:
Explanation: This formula calculates the earnings per share after a merger or acquisition by dividing the combined earnings by the total number of shares outstanding.
Details: Calculating Post Merger EPS is crucial for investors and analysts to evaluate the financial impact of a merger or acquisition on the acquiring company's profitability per share. It helps in assessing whether the merger is accretive or dilutive to earnings.
Tips: Enter the total earnings of the acquirer post merger in dollars and the total number of shares of the acquirer. Both values must be positive numbers.
Q1: What does a higher Post Merger EPS indicate?
A: A higher Post Merger EPS indicates that the merger or acquisition is accretive, meaning it increases the earnings per share of the acquiring company.
Q2: What does a lower Post Merger EPS indicate?
A: A lower Post Merger EPS indicates that the merger or acquisition is dilutive, meaning it decreases the earnings per share of the acquiring company.
Q3: How is TEAP calculated?
A: TEAP is the sum of the acquiring company's earnings and the acquired company's earnings after the merger is completed.
Q4: Does TNSA include new shares issued for the merger?
A: Yes, TNSA includes all shares outstanding of the acquirer, including any new shares issued as part of the merger or acquisition.
Q5: Why is Post Merger EPS important for investors?
A: Post Merger EPS helps investors understand how the merger or acquisition affects the company's profitability on a per-share basis, which is a key metric for valuation.