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
| +299 | I Snuck Into UBS Office And Took A Shit On The Floor | 28 | 11h |
| +287 | TPH V.S. Mizuho [HOU] | 36 | 1d |
| +244 | Why leave restructuring for M&A? | 30 | 11h |
| +229 | Best Power/Renewables/Energy Teams? | 38 | 9h |
| +223 | Houston 2026 Oil & Gas Investment Banking Rankings | 53 | 17m |
| +187 | Centerview HC group falling off? | 30 | 10h |
| +183 | Actual EB List | 27 | 20h |
| +177 | Predicted 1Q 2027 Story - UBS IB blames Outlook Outage for Down Quarter | 35 | 1h |
| +173 | Incoming TPH Analysts Larping as PWP on LinkedIn | 24 | 2h |
| +167 | How does getting staffed on an "account" work? | 40 | 1h |
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
Quos recusandae quo quo reiciendis. Veritatis praesentium et ea consectetur quo soluta.
Ducimus error similique suscipit tempore. Dolores et sit sint rerum dolor odit aut. Maiores adipisci sint modi et aut beatae.
Mollitia repellat ut nostrum earum. Est sed sequi doloribus qui quam. Eveniet at voluptatem dolorem quia dolorem animi. Dolor sequi pariatur aut sit dolores quos.
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...