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New Fair Values for Apple, Tesla After Stock Splits

After adjusting our fair value estimates, both stocks still look rich.

Susan Dziubinski

Aug 31, 2020

Mentioned: Tesla Inc (TSLA) , Apple Inc (AAPL)

Both Apple (AAPL) and Tesla (TSLA) began trading on a post-split basis today.

Nothing fundamentally changes with a company when it splits its stock; its market capitalization remains the same, too. Companies usually split their stocks in an effort to make their share prices more attractive to individual investors, who may be put off by a too-high stock price. But in today's market, splits seem unnecessary, says Morningstar senior editor Ruth Saldanha.

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Susan Dziubinski does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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