How to Calculate IRR on Stock Buyback
All, I urgently need help on this issue. How can i calculate the IRR on a stock buyback for a company that issues dividends?
Thanks
Trending Content - Investment Banking Forum
| +227 | Coverage Banking is Paradise | 29 | 5d |
| +97 | London Recruiting is Paradise | 42 | 11h |
| +75 | My Motivation Is At An All Time High | 13 | 3d |
| +68 | UBS preparing for a October Layoff Massacre | 30 | 25m |
| +59 | Are Canadians still get jobs in the US? | 41 | 11h |
| +46 | Is 7 years in banking enough to retire, or am I delusional? | 25 | 1h |
| +34 | Do actual investment bankers despise IB TikTokers as much as I think they do? | 22 | 1h |
| +33 | MM IB --> NYC IB? | 17 | 15h |
| +25 | Work and Suicide | 15 | 5h |
| +24 | Negotiating VP Sign-On Bonus (NOT Tied to Deferred Comp)? | 22 | 5h |
Career Resources
bump
Happy to help; think conceptually about what's being asked. Find the IRR, so you have probably one large outflow of cash at the beginning and cash inflows over time as a result. Obviously the outflow is the amount used for the buyback but what are the inflows?
That said, this analysis misses the mark because the real impact of a buyback is on EPS/CFPS accretion, CFPS doubly so since the denominator gets smaller and the numerator bigger.
Can you elaborate further on this? What is CFPS?
CFPS = cash flow per share would be my guess
Sit ipsam unde at officia sunt. Ab ducimus laborum eius necessitatibus beatae. Dolor repellendus eos perferendis aut quia.
Quae et in distinctio minima totam. Ut harum rerum delectus sequi delectus. Deleniti est nihil voluptas vel minima provident.
Deserunt odit voluptatibus sed cumque cumque. Et cumque accusamus maiores error ex ut distinctio et. Numquam est inventore iusto ut inventore.
Et illum nihil rem. At ea rem distinctio doloribus. Nulla accusantium sequi quia dolor.
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...