Thursday, April 29, 2021

Apple And The Announced Buyback -- Back-Of-The-Envelope -- April 29, 2021

Back-of-the-envelope:

  • Apple is currently valued at $2.3 trillion
  • 17 billion shares outstanding
  • trading around $135/share

Buyback:

  • Apple announces a $90-billion share buyback program on April 28, 2021
  • with previous buyback yet to be completed, let's round that to $100 billion
  • $100 billion / $135-share = 740,740,741 shares to be bought back.

That would leave:

  • 17 billion shares - 750 million shares = 16.250 billion shares outstanding after the buyback
  • assuming the market still values Apple at $2.3 trillion:
  • $2.3 trillion / 16.250 billion shares = $142 / share.

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