permabear Posted May 21, 2015 Share Posted May 21, 2015 If management is sitting on cash and the stock is undervalued, how exactly should they make the call between buying back stock or investing organically/through M&A? Would you look at EPS accretion? Or compare your firm's EV/EBITDA to that of your target? Would you value your firm and see what implied discount it trades at, and use that as your expected return? Return on capital? etc. Appreciate any suggestions. Thanks Link to comment Share on other sites More sharing options...
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