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QuestionsCategory: Valuation QuadrantEvaluation of P/E ratio after Bonus Shares
Grace asked 1 year ago

Hello, if a company recently issued bonus shares (for instance 2 bonus shares for 1 existing share), do we need to adjust past 10 years’ P/E ratio and EPS to have an equal comparison?

Thank you.
 
 
 
 

2 Answers
Jieren Zheng answered 1 year ago

Hi Grace,
Yes, you should adjust the EPS so it is a meaningful comparison.

 

 

Victor Chng replied 1 year ago

Thanks JR

Victor Chng answered 1 year ago

Hi Grace,
 
It is as what JR had mentioned.