Adjusting EPS: Mastering Post-Split Valuation Models

You are deep into a quarterly review for a mid-cap IT firm that recently underwent a 1:2 stock split. While updating your Excel model, you notice that the trailing twelve-month Earnings Per Share (EPS) figures haven't...

Bonus Issues: Decoding the Impact on Share Capital and Valuation

Imagine you are finalizing your valuation model for a high-growth company that has just announced a 1:1 bonus issue. Your client is eager to know if this creates new wealth, but your task as an analyst is to distinguish...

Evaluating Market Liquidity: Beyond Stock Splits in Indian Exchanges

Picture yourself preparing a coverage note on a blue-chip company that has just announced a 1:10 stock split. A junior analyst on your team argues that this move will automatically surge the stock's trading volume and...