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An independent exercise, not a statement by the video creator or verification of every claim in the video.

Do buybacks followed by cancellation raise EPS twice?

Assume profit attributable to ordinary shareholders is 900 and 100 shares are outstanding, giving basic EPS of 9. If 10 shares are repurchased at the start of the year and held in treasury while profit stays unchanged, 90 shares are outstanding throughout the period and EPS becomes 10. Later cancellation of those same 10 treasury shares does not raise EPS again under the same profit and period assumptions, because they are already excluded from the denominator. Repurchase changes weighted-average outstanding shares, while cancellation changes issued shares and the potential for re-disposal.

Check for yourself

1. Does the announced amount represent a buyback authorization, completed purchases, or cancellation of shares already in treasury?
2. Does the EPS calculation reflect actual purchase dates, changes in profit and interest income, and possible reissuance?

Limits of application

This simplified hypothetical illustrates basic EPS under IAS 33, not an estimate for an actual stock. It assumes a beginning-of-year repurchase and unchanged profit, excluding preferred shares, dilutive securities, employee compensation and transaction costs. Different purchase dates change time weights, and earnings effects from using cash also matter. Higher EPS does not itself guarantee price appreciation or economic value creation.