Except that companies seem to be bad a timing share buybacks [1] Also your maths is slightly off. If the company uses $1bn to buy back stock, the company is no

Except that companies seem to be bad a timing share buybacks [1] Also your maths is slightly off. If the company uses $1bn to buy back stock, the company is now $1bn poorer. So whilst EPS etc will increase the assets per share may well decrease so I wouldn't necessarily expect the value of the outstanding stock to increase by $1 billion. [1] http://www.barelkarsan.com/2010/12/buybacks-in-style-at-wrong-time.html?m=1 http://www.barelkarsan.com/2010/12/buybacks-in-style-at-wron...