PHM Pulte Homes

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  • PHM Pulte Homes

    When a stock splits how does it affect the P/E and EPS. If it does is this stock worth looking at, Splits on Monday, has a P/E of 10.47 and EPS of 8.689. New split price should be at 45.47, interest should stay down until the end of 2004. Also very nice job with WSBK and KSWS, thanks for all your help.
  • mrmarket
    Administrator
    • Sep 2003
    • 5971

    #2
    When a stock splits in half, its EPS is cut in half. However, since there are more shares to the enterprise, the market cap, and the PE of the stock do not change.

    Some people view splits as bullish since management would not vote to split a stock if they believed the stock price of the company is headed south.
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