Hi, am reading the Motley Fool guide to valuations. It says that share buybacks are good because they increase the EPS by reducing the shares outstanding. It also says that mkt cap is price x shares outstanding. But does that mean with share buybacks the market cap reduces / does mkt cap exclude value of stocks owned by the company? Surely that can't make sense as you can have a $50bn mkt cap company where the company owns 20% of it? Or not?
Thx
| +81 | Q&A - Buyside Equity Research Analyst/PM | 29 | 3d | |
| +32 | How the heck do you learn all of this stuff? | 5 | 1w | |
| +28 | My experience on the sell side | 20 | 2w | |
| +28 | Getting Frustrated | 10 | 3w | |
| +24 | Clues in Financial Reporting Analysis | 7 | 4h | |
| +18 | Biotech ER vs IB | 16 | 3w | |
| +17 | Am i fairly compensated? | 9 | 1d | |
| +14 | Data Science to PM | 8 | 6d | |
| +14 | Heard they don’t model at Oppenheimer | 10 | 2w | |
| +12 | ER - Remote Jobs? | 8 | 3d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Sounds like a $400K/yr associate to me
Pepstar:
Quit wasting people’s time. Don’t post here. I come to this forum to learn shit and you’re playing pranks. If you want be a smart-ass, do it face-to-face.
Owned
LOL. Man this is too funny
How could you really post such a question after your rant about being worth a cool million dollars by 27?
Bump bump bump bump bump
this is waaaaaay to funny :) thanks for making my day!
Dood.. you're a 1st year associate and you're reading up on valuation from fool.com. Isn't that kinda.. basic for you?
Here.. I'll give you a clue.. if EPS increases.. what happens to share price?
SLOW DOWN. tylderdurden, can you define EPS for him?
It reminds me of Almost Heros:
David Spade: "The capital 'B'"
Chris Farley: "ENOUGH FOR TODAY! DO YOU WANT MY HEAD TO EXPLODE!?"
Haha. Yeah, it is pretty amusing that I've got where I've got without knowing some of the most basic shizzle. Back in grad training I was chucked off the credit structuring desk and put into equities as they thought I couldn't handle it. Best thing that ever happened to me lol, those dorks got flat YoY (1st -> 2nd yr) bonuses. Anyway, I asked a couple of people on my team at work today and they weren't so sure either - a VP didn't know where the shares "went" once bought back, instead of Treasury he said they were converted to cash! And there was disagreement about whether the mkt cap would get back to previous levels or not through share price increase.
you're a toolbag. chuck norris is gunnin for you.
you do not trade equities with that question...good call nystateofmind
This is not the first time these kind of things have happened, thats why I would take advice and salary stats etc. with a grain of salt because its probably a summer analyst, hehe.
Illum impedit libero minima. Quod et in non ipsa. Assumenda sequi officiis eum non. Sit et sint fugit perspiciatis unde aut debitis. Quas quo pariatur id itaque.
Beatae ut deleniti aut. Repudiandae quia neque voluptatum eligendi cupiditate voluptatem nisi. Dolorum aperiam porro blanditiis repellendus.
Rem est est nostrum quisquam. Quo nesciunt non itaque quo animi aliquid. Aliquam consequatur id voluptatem aut aut necessitatibus inventore maiores. Aut quas libero occaecati enim. Qui quod voluptas consequuntur quae est quos optio.
Facilis aliquam tempora earum laboriosam doloribus. Natus et molestiae voluptas a accusantium. Voluptatem placeat blanditiis omnis molestias enim neque. Aliquid quia eos quod voluptatibus quas labore eum laboriosam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...