Share Swap Ratio Calculator

Work out share swap ratio instantly with clear inputs, formula shown and shareable results.

About Share Swap Ratio Calculator

The swap ratio is the agreed value per target share divided by the acquirer's share price: how many acquirer shares each target share receives. Multiplying by target shares gives the issuance, and that determines what proportion of the combined company the target's shareholders end up owning.

Formulas

Swap ratio

Ratio = Target value per share / Acquirer share price

Shares issued

Shares issued = Ratio x Target shares outstanding

Worked example

With the default values below, Share Swap Ratio Calculator returns Share exchange ratio of 0.4000. Change any input above and every figure here is recalculated in your browser.

Inputs used

Target value per share: 240
Acquirer share price: 600
Target shares outstanding: 5,000,000
Acquirer shares outstanding: 40,000,000

Results

Share exchange ratio: 0.4000
Acquirer shares to issue: 2,000,000
Target holders' stake in the combined company: 4.762%
Total shares after the merger: 42,000,000

Step by step

1Values used
2Swap ratio
3Shares issued
4Share exchange ratio= 0.4000
5Acquirer shares to issue= 2,000,000
6Target holders' stake in the combined company= 4.762
7Total shares after the merger= 42,000,000

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
Figures are rounded for display to 4 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

Fixed ratio or fixed value?

A fixed ratio leaves the target exposed to the acquirer's share price until closing; a fixed value shifts that risk to the acquirer. Collars split the difference.

Does a swap dilute acquirer earnings per share?

It depends on the relative multiples. Issuing shares at a higher multiple than the target's earnings multiple is accretive; the reverse is dilutive.