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Hamoodzstyle t1_j2bq2wn wrote

Reply to comment by Obvious_Chapter2082 in [OC] Apple’s cash flow statement visualized by giteam

Doesn't lower total equity (i.e. number of outstanding shares in the market) with unchanging valuation results in higher value per share.

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Obvious_Chapter2082 t1_j2bqfe4 wrote

The valuation does change though. Outstanding shares decrease, and the amount of total equity also decreases by an equivalent amount (since treasury stock reduces company equity). Since these 2 amounts offset, the company value per outstanding share doesn’t change

There are outside factors that could increase or decrease stock price though, it’s just that people usually conflate this with buybacks

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