New Fair Values for Apple, Tesla After Stock Splits
After adjusting our fair value estimates, both stocks still look rich.
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.
Susan Dziubinski does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.