Hello friends, today we will discuss what will happen to the PE ratio after the stock split? You must have heard that a company decides that it will split the share in the ratio of 1: 2 or another company decided to split the share into a ratio of 1:5. First, let us try to understand what a stock split is.
Meaning of Stock split:
For example, if company A has a face value of Rupees 10 and its share price is Rs 1000 and If the company decides that it will split the share in the ratio of 1: 2, it means that a split of 1 share at a face value of Rupees 10 each into 2 equity shares at a face value of Rupees 5 each.
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