Wht Happens To Eps & Pe Ratio After Split Or Bonus

A

akashbothra

New Member
#1
#1
I HAVE THIS QUESTION TO SENIOR MEMBERS OF TRADERJI, WHAT HAPPENS TO THE EPS AND PE RATIOS AFTER SPLIT OR BONUS?

SAY ANY SHARE IS QUOTING AT Rs. 200 WITH AN EPS OF Rs. 10.NOW AFTER BONUS OF 1:1 THE SHARE PRICE GOES TO 100.THERFORE AT Rs. 200 THE PE RATIO WAS 20 AND AFTER BONUS IT BECOMES 10.IS IT SO?:confused: :confused:
 
A

aca_trader

Active Member
#2
#2
akashbothra said:
I HAVE THIS QUESTION TO SENIOR MEMBERS OF TRADERJI, WHAT HAPPENS TO THE EPS AND PE RATIOS AFTER SPLIT OR BONUS?

SAY ANY SHARE IS QUOTING AT Rs. 200 WITH AN EPS OF Rs. 10.NOW AFTER BONUS OF 1:1 THE SHARE PRICE GOES TO 100.THERFORE AT Rs. 200 THE PE RATIO WAS 20 AND AFTER BONUS IT BECOMES 10.IS IT SO?:confused: :confused:
Click to expand...
After bonus EPS will go down as the denominator in this ratio is No. of Outstanding shares. Hence, PE will remain the same.

Best Regards,
--Ashish
 
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