Not all share repurchases are created equal. In this video, analyst Jay Hill explains why the price a company pays relative to intrinsic value is the difference between a buyback that builds wealth for shareholders and one that squanders it. And why, in the right circumstances, a buyback can be one of the most powerful capital allocation tools a company has.
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GLOSSARY
Mergers and Acquisitions (M&A) is a term used to describe businesses combining through different types of transactions.
EBITDA (Earnings Before Interest, Taxes and Amortization) is used to gauge a company’s operating profitability, adding back the non‐cash expenses of depreciation and amortization to a firm’s operating income (EBIT + depreciation + amortization expense).
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