Accretion Dilution Analysis Calculation

Introduction & Importance

Accretion dilution analysis calculation is a critical process in corporate finance, helping investors and analysts understand the impact of an acquisition on a company’s earnings per share (EPS).

How to Use This Calculator

1. Enter the acquisition price.
2. Enter the number of shares issued in the acquisition.
3. Enter the number of existing shares.
4. Click ‘Calculate’.

Formula & Methodology

The formula for accretion dilution is: (EPS_a – EPS_b) / EPS_b * 100%, where EPS_a is the EPS after the acquisition and EPS_b is the EPS before the acquisition.

Real-World Examples

Data & Statistics

Company	EPS Before	EPS After	Accretion/Dilution

Expert Tips

• Always consider the long-term impact of an acquisition.
• Compare the acquisition price to the intrinsic value of the target company.

Interactive FAQ

What is accretion dilution?

Accretion dilution refers to the impact of an acquisition on a company’s earnings per share (EPS).

Learn more about accretion dilution from the SEC

Understand accretion dilution better with Investopedia