What happened to the PE ratio after the stock split

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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