EPS accretion / dilution calculator

A financing statement dressed as a valuation.

Interactive: EPS accretion / dilutionMedium

Acquirer earnings $m Acquirer shares (m) Acquirer share price $ Target earnings $m Deal value $m Paid in stock % Debt rate on the cash % Tax rate %

EPS before: —
EPS after: —
Change: —
Shares issued: —
Funding cost: —
Reading: —

Push the stock share to 0% and the deal becomes more accretive, because debt at 6% pre-tax is cheaper than equity at a 20× multiple. That is the whole trick, and it is why accretion is a financing statement, not a valuation one. The real test is whether the price beats the target's standalone value — that is a DCF question, not an EPS one.

The idea behind it

This calculator belongs to Corporate Actions, where the mechanism it computes is explained step by step, with the formula, what each input means and where the simple model stops being right. Everything is computed in your browser; nothing you type is sent anywhere.

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The same in full — six points, and why each one matters

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