What does accretive mean?

To be accretive is to increase earnings per share. How Does Accretive Work? This term is most often used in the context of acquisitions. Let's assume Company XYZ has EPS of 25 cents this year. Next year, it acquires Company ABC.

What makes a deal accretive?

Further accretive expansion along this long east-west street is re-ected in other plan units, stretched out along its length. A deal will always be earnings accretive if the acquirer's price-to-earnings ratio is greater than the target's price-to-earnings ratio, including the acquisition premium.

What does accretion mean in finance?

In general finance, accretion refers to the change in the price of a bond or security. In fixed-income investments, the word accretive may be used to describe the increase in value attributable to interest accrued but not paid. For example, discounted bonds earn interest through accretion, until they reach maturity.