Foot Locker / Hist.Data / Zero Real Growth

Share Buyback vs. Dividend using Terminal Values (Model SB‑DIV‑TV)

@SimSim July 18, 2024

This model simulates the gain/loss to long-term shareholders from making a single share buyback, compared to making a dividend payout for the same amount of money. All future earnings are assumed to be paid out as dividends.

Share-prices are NOT simulated. Instead the simulated earnings for the final year are assumed to grow forever so they are used to calculate Terminal Values. If you want to simulate future share-prices instead, then you should use another model.

The capital gains tax is irrelevant because this model does not simulate future share-prices. And the dividend tax is also ignored, because it cancels out in the valuation formulas.

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Title

Keywords

Remove Outliers

Comment

Current Share-Price

Current Shares

Currency

Buyback Amount

Buyback Tax-Rate

Excess Cash

Borrow Amount

Interest Rate Borrow

Terminal Growth

Note

Selected

Constant

Uniform Low

Uniform High

Normal Mean

Normal Std

User Data

0% ; 15%
2% ; 60%
4% ; 25%

Interpolate

Discount Rate

Note

Selected

Constant

Uniform Low

Uniform High

Normal Mean

Normal Std

User Data

-6.31% ; 0%
-6% ; 0.0834%
-5.7% ; 0.131%
-5.39% ; 0.191%
-5.09% ; 0.259%
-4.786% ; 0.33%
-4.481% ; 0.395%
-4.176% ; 0.444%
-3.872% ; 0.469%
-3.567% ; 0.469%
-3.263% ; 0.451%
-2.958% ; 0.428%
-2.653% ; 0.414%
-2.349% ; 0.415%
-2.044% ; 0.433%
-1.739% ; 0.466%
-1.435% ; 0.515%
-1.13% ; 0.586%
-0.825% ; 0.685%
-0.521% ; 0.811%
-0.216% ; 0.954%
0.088% ; 1.09%
0.393% ; 1.21%
0.698% ; 1.3%
1.002% ; 1.36%
1.307% ; 1.4%
1.612% ; 1.45%
1.916% ; 1.52%
2.221% ; 1.62%
2.526% ; 1.73%
2.83% ; 1.85%
3.135% ; 1.93%
3.439% ; 1.95%
3.744% ; 1.89%
4.049% ; 1.77%
4.353% ; 1.62%
4.658% ; 1.47%
4.963% ; 1.34%
5.267% ; 1.24%
5.572% ; 1.17%
5.877% ; 1.1%
6.181% ; 1.04%
6.486% ; 0.99%
6.79% ; 0.936%
7.095% ; 0.881%
7.4% ; 0.826%
7.704% ; 0.778%
8.009% ; 0.744%
8.314% ; 0.73%
8.618% ; 0.741%
8.923% ; 0.783%
9.227% ; 0.857%
9.532% ; 0.96%
9.837% ; 1.08%
10.14% ; 1.2%
10.45% ; 1.31%
10.75% ; 1.39%
11.06% ; 1.47%
11.36% ; 1.57%
11.66% ; 1.71%
11.97% ; 1.88%
12.27% ; 2.07%
12.58% ; 2.23%
12.88% ; 2.33%
13.19% ; 2.35%
13.49% ; 2.29%
13.8% ; 2.18%
14.1% ; 2.05%
14.41% ; 1.91%
14.71% ; 1.77%
15.02% ; 1.64%
15.32% ; 1.52%
15.62% ; 1.4%
15.93% ; 1.29%
16.23% ; 1.18%
16.54% ; 1.07%
16.84% ; 0.971%
17.15% ; 0.874%
17.45% ; 0.781%
17.76% ; 0.694%
18.06% ; 0.613%
18.37% ; 0.542%
18.67% ; 0.483%
18.98% ; 0.442%
19.28% ; 0.421%
19.59% ; 0.422%
19.89% ; 0.445%
20.19% ; 0.485%
20.5% ; 0.535%
20.8% ; 0.584%
21.11% ; 0.621%
21.41% ; 0.632%
21.72% ; 0.603%
22.02% ; 0.534%
22.33% ; 0.436%
22.63% ; 0.326%
22.94% ; 0.224%
23.24% ; 0.141%
23.55% ; 0.0807%
23.85% ; 0%

Interpolate

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This model is a BETA-version!

It may not be fully tested and its features may change in the future.
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