Will the reverse split change the company's market capitalization or affect its valuation multiples?

Answer

A reverse‑split is purely a mechanical change in the number of shares outstanding; it does not inject or withdraw capital from the business. Consequently, the company’s total market‑capitalisation (share‑price × shares‑outstanding) should remain essentially unchanged, aside from the negligible cash‑flow impact of the split‑administration fees. The consolidation of 80 old shares into 1 new share will simply push the quoted price upward by roughly the same 80‑to‑1 factor, while the share count falls by 98.75 % (80 → 1).

Because the price and share count move in lock‑step, valuation multiples that are based on market‑cap—such as P/E, EV/EBITDA, or price‑to‑book—are mathematically unchanged immediately after the split. In practice, however, the market may temporarily re‑price the stock if the new price level alters the perceived liquidity, attracts a different class of investors (e.g., index funds that avoid sub‑$5 stocks), or triggers short‑covering in the days following the split.

Trading implications

• Short‑term price action: Expect a modest, orderly price adjustment to the new level (≈ 80× the pre‑split price) with possible volatility as market participants recalibrate the lower float and adjust bid‑ask spreads.
  
• Liquidity: The float will shrink dramatically, so daily volume may thin out and bid‑ask spreads could widen—risking higher execution costs for larger orders.
  
• Technical signals: Existing chart patterns (trend lines, support/resistance) will be rescaled; traders should re‑draw key levels on the post‑split chart to avoid mis‑reading breakouts.
  
• Strategic positioning: If you are a long‑term holder, the split itself does not change fundamentals, so the investment thesis remains unchanged. If you are a short‑term trader, consider a tight‑range breakout or mean‑reversion play around the new price, but size positions conservatively given the reduced liquidity.
  

In short, the 80‑for‑1 reverse split will not materially affect Chanson International’s market cap or valuation multiples; any price movement will stem from market‑microstructure effects rather than a change in the underlying economics. Adjust your technical analysis to the new price scale and monitor liquidity‑driven volatility for short‑term trade opportunities.