Enter the equity purchase price ($) and the current share price ($) into the Exchange Ratio Calculator. The calculator will evaluate and display the Exchange Ratio.
- All Ratio Calculators
- Cross Ratio Calculator
- Cash Ratio Calculator
- Plowback Ratio Calculator
- Net New Equity Calculator
Exchange Ratio Formula
The following formula is used to calculate the Exchange Ratio.
EXR = EP / SP
- Where EXR is the Exchange Ratio ( )
- EP is the equity purchase price ($)
- SP is the current share price ($)
To calculate an exchange ratio, divide the equity purchase price by the current share price.
How to Calculate Exchange Ratio?
The following example problems outline how to calculate Exchange Ratio.
Example Problem #1:
- First, determine the equity purchase price ($).
- The equity purchase price ($) is given as: 56.
- Next, determine the current share price ($).
- The current share price ($) is provided as: 70.
- Finally, calculate the Exchange Ratio using the equation above:
EXR = EP / SP
The values given above are inserted into the equation below and the solution is calculated:
EXR = 56 / 70 = .80
Example Problem #2:
For this problem, the variables required are provided below:
equity purchase price ($) = 70
current share price ($) = 90
Test your knowledge using the equation and check your answer with the calculator above.
EXR = EP / SP = ?
