Description
How to properly value and simulate share buybacks to assess whether they will cause a gain or loss for the remaining shareholders. And how to measure the actual gain/loss caused by past share buybacks.
Paper: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=6595599
Simulator: https://simsim.run
00:00:00 Intro
00:03:48 Basic Formulas
00:11:27 Capital Gains Formulas
00:19:08 Historical Data Formulas
00:27:21 Historical Data - Sturm Ruger
00:30:34 Historical Data - Harley Davidson
00:32:22 Historical Data - AutoZone
00:34:34 Historical Data - Western Union
00:35:48 Historical Data - Entire Stock-Market
00:37:27 Simulation Basics
00:46:47 Simulation - Buyback vs. Investment
00:48:48 Simulation - Share-Prices
00:53:46 Simulation - Overvalued Stock
00:56:39 Simulation - Undervalued Stock
01:00:48 Final Words