Adjusted Price
A historical price restated to account for corporate actions, so that a price series is comparable over time.
Formula
Adjustment Factor for a bonus or split = 1 / (New Shares per Old Share); historical prices are multiplied by the cumulative factor
Unit
₹
In depth
Without adjustment, a price series shows a 50% crash on the ex-date of a 1:1 bonus and a 20% crash on a 1:5 split, neither of which happened to any shareholder. Every return calculation, chart, moving average and backtest must use adjusted prices or its results are corrupted at every corporate action. Providers differ on whether they adjust for dividends as well as for splits and bonuses, which produces different long-run return figures — total return series adjust for both. Comparing a personal purchase price against an adjusted historical series without applying the same adjustment is a common source of confusion.
Worked example
A share at ₹600 before a 1:1 bonus and ₹300 after has an adjusted pre-bonus price of ₹300. The unadjusted series shows a 50% single-day fall that no holder experienced.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Adjusted Price” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.