Tools · Capital Allocation

Buyback Calculator

Does this buyback reduce shares at a sensible price?

Buybacks are not automatically good. A company can lift EPS mechanically while paying too much for its own stock.

This calculator separates the arithmetic from the judgment. It estimates share count reduction, EPS accretion, buyback yield, and cash-flow support.

The better question is whether the company reduced shares at an attractive price without weakening long-term value.

Ticker

Enter a ticker to prefill price, share count, net income, and FCF where available.

Core inputs

Current share priceUSD per shareShares outstandingTotal diluted or basic sharesNet incomeTrailing 12-month net incomeBuyback amountCash committed to repurchases

Optional lenses

Average repurchase priceBlank = current priceFree cash flowUsed to judge cash-flow coverageStock-based compensationUsed to judge dilution offsetEstimated intrinsic value per shareYour own valuation estimate

Manual inputs always take priority over automatically loaded data.

Enter positive values for share price, shares outstanding, net income, and buyback amount.

Methodology

The calculator isolates the mechanical EPS effect from the harder capital-allocation question. It assumes net income is unchanged, applies the entered or loaded buyback budget at the selected repurchase price, and then compares the pro forma share count with the current share base.

Market capitalizationShare price x shares outstanding

Shares repurchasedBuyback amount / repurchase price

Pro forma share countShares outstanding - shares repurchased

EPS accretion(Net income / pro forma shares) / current EPS - 1

Buyback yieldBuyback amount / market capitalization

Cash-flow coverageBuyback amount / free cash flow

Dilution offsetBuyback amount / stock-based compensation

Value transferShares repurchased x (intrinsic value - repurchase price)

Loaded buyback amounts, when available, come from recent reported cash-flow statement repurchase lines and should be treated as historical context rather than a forward authorization.
Free cash flow and stock-based compensation are used as coverage and dilution checks. They are not substitutes for a full balance-sheet review.
The intrinsic value field is deliberately user-supplied because a market data feed cannot decide whether a repurchase price is economically attractive.