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A buyback returns cash by retiring shares, so the same profit is divided among fewer of them and earnings per share rises. It only creates value if the shares are bought below intrinsic value — otherwise it merely flatters the per-share numbers.
Buyback effect
Shares retired = amount / price; new EPS = net income / (shares - retired)
Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
Arithmetically yes, economically only if the price paid was below value. Cash spent is cash no longer available.
Buybacks are flexible and can be tax-efficient for shareholders; dividends signal a firmer commitment to distribution.