medium · Investment Banking valuation-core
An acquirer with a current P/E multiple of 20.0x is considering a 100% stock-for-stock acquisition of a target trading at a P/E of 15.0x. After accounting for a 20% control premium, the target's offer P/E becomes 18.0x.
Without considering synergies, will this deal be accretive or dilutive to the acquirer's Earnings Per Share (EPS)?
- Dilutive
- Neutral
- Cannot be determined without the share count
- Accretive
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