~400 million shares outstanding. $25b buyback program through 2030.
Scenario A: With the (current 201) premarket price: $25b / $201 - 119 million shares. 30% of the float.
but assuming 201 is silly. Scenario B: Assume average cost for buybacks rises to $300.
$25b / $300 = ~83 million shares. 21% of the float.
Assume current net income $9.7b grows 8% per year (they reported 13% yesterday during earnings). That's $13b by 2030.
In Scenario A, $13b / ~280 million shares (remaining) = $47 EPS. In Scenario B, $13b / ~315 million shares (remaining) = $42 EPS
10 PE in Scenario A is $470 per share. 15 PE is $700.
10 PE in Scenario B is $420 per share. 15 PE is $630.
IDKWTF is going on. What am I missing here?