How it works
TERP = (existing share count × old price + new share count × subscription price) / total share count.
Input definitions
- Share price before rights
- Enter the value in the labeled unit.
- Existing shares required
- Enter the value in the labeled unit.
- New shares offered
- Enter the value in the labeled unit.
- Subscription price
- Enter the value in the labeled unit.
A worked example
- Share price before rights
- 10
- Existing shares required
- 4
- New shares offered
- 1
- Subscription price
- 6
Assumptions & limits
Planning model using the rates, cash flows and periods entered. Examples are illustrative, not market quotes or personalised financial advice. Taxes, inflation and transaction costs are excluded unless explicitly entered.
Sources & review
Maintained by AnsRio. Methods and examples use automated checks; this does not imply independent professional certification.
Method updated 2026-10-18. Content checked against the stated method and examples. Our verification approach.
Common questions
Will the market price equal TERP?
No. TERP is a mechanical value under unchanged market conditions. Trading, dilution expectations and company news can change price.
How does Theoretical ex-rights price work?
TERP = (existing share count × old price + new share count × subscription price) / total share count.
What should I check before using Theoretical ex-rights price?
Planning model using the rates, cash flows and periods entered. Examples are illustrative, not market quotes or personalised financial advice. Taxes, inflation and transaction costs are excluded unless explicitly entered.