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QuestionsCategory: Valuation QuadrantStock Splits and PE
Tjung Wai Wong asked 2 years ago

In your video you’ve mentioned that we should use adjusted close price when dealing with stock splits in order to get a better PE, can you explain how you would do it?
I have been plotting EW only to realise there was an approved 3-1 split in May 2020

1 Answers
Victor Chng answered 2 years ago

Hi Tjung Wai,
You can just take the closed price in yahoo finance, it have adjusted for split already. Do remember to adjust your previous number of shares to account for the split.