cmattporter Posted September 23, 2014 Share Posted September 23, 2014 I have always been told that whenever a company is buying back their shares its a good thing for the shareholders. I ran some numbers on one company and starting to think otherwise. ISRG- Intuitive Surgical Equity at year end 2012 $3,580M At year end 2013 ISRG bought around $1B of their stock, decreasing their shares outstanding from 40.2M to 38.2M. If they didn't buy the stock, assuming the cash went to cash asset the equity would have increased to $4,500M. The book value on the equity of $4,500M w/40.2M shares equals about $112/share. The 2013 Equity Value adding in for the buybacks is $3,501M w/new 38.2M shares equals about $91.66 Book value/share. This doesn't make any sense to me. Can anyone explain? Matt Link to comment Share on other sites More sharing options...
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