Calculator Form
Enter the cum-rights price, subscription price, and ratio terms. The result appears above this form after submission.
Example Data Table
| Cum-rights Price | Subscription Price | Rights Ratio | TERP | Right Value | Discount | Capital Raised |
|---|---|---|---|---|---|---|
| $12.00 | $9.00 | 1 for 4 | $11.40 | $0.60 | 25.00% | $9.00 |
Example formula check: ((12 × 4) + (9 × 1)) ÷ 5 = 11.40.
Formula Used
TERP = ((Pc × Ne) + (Ps × Nr)) ÷ (Ne + Nr)
Value per existing share right = Pc − TERP
Value gain on each new share = TERP − Ps
Subscription discount % = ((Pc − Ps) ÷ Pc) × 100
Capital raised = Ps × Nr
Pc means the cum-rights share price.
Ps means the subscription price for the new shares.
Ne means existing shares in the rights ratio.
Nr means new rights shares offered in the ratio.
How to Use This Calculator
- Enter the current cum-rights share price.
- Enter the subscription price for the rights issue.
- Input the rights ratio using old shares and new shares.
- Add your current holding to estimate entitlement and subscription cash needed.
- Choose the currency and decimal precision you prefer.
- Press Calculate TERP to display the result above the form.
- Review the summary cards, graph, and interpretation.
- Use the CSV or PDF buttons to export your result set.
Frequently Asked Questions
1. What is TERP in a rights issue?
TERP is the theoretical share price after a rights issue. It blends the old market price and the new subscription price using the number of old and new shares in the offer ratio.
2. Why does TERP usually fall below the cum-rights price?
The subscription price is often set below the market price. That discount lowers the weighted average price after the new shares are included, so TERP usually comes out below the original cum-rights price.
3. Does TERP guarantee the future market price?
No. TERP is a theoretical estimate only. Actual trading can differ because of market sentiment, liquidity, news, execution risk, and investor demand during or after the rights issue.
4. What does value per right mean?
It shows the theoretical value transferred from the old share price into the right. A higher difference between the cum-rights price and TERP generally means a more valuable right.
5. How is the rights ratio entered here?
For a 1-for-4 issue, enter 4 as existing shares and 1 as rights shares. The calculator then applies that ratio directly inside the weighted average TERP formula.
6. What does the current holding field do?
It estimates how many new shares you may subscribe for, the cash required to exercise them, and the theoretical value of your holding after the issue under full participation.
7. Can this calculator be used for odd-lot holdings?
Yes, it gives a theoretical entitlement value even for non-round holdings. Actual allotment, rounding rules, and trading treatment depend on the registrar, market rules, and company terms.
8. Why export results to CSV or PDF?
Exports help you save deal assumptions, compare scenarios, share results with colleagues, and keep a simple record for valuation notes, investment memos, or corporate finance reviews.