Buyback Yield
Calculate the buyback yield, a valuation ratio that measures the net amount of common stock repurchased (net of new shares issued) relative to the company’s market capitalization.
A positive buyback yield means the company is a net repurchaser of its own stock (shareholder-friendly), while a negative buyback yield means the company is a net issuer of new shares (dilutive).
The formula is as follows:
\[\text{Buyback Yield} = - (\text{Common Stock Purchased} + \text{Common Stock Issued}) / \text{Market Capitalization}\]Also known as: net repurchase yield.
Buyback Yield in Python
get_buyback_yield is part of the Ratios module of the open-source Finance Toolkit. Install it with:
pip install financetoolkit -U
Then call get_buyback_yield as shown below.
from financetoolkit import Toolkit
toolkit = Toolkit(["AAPL", "TSLA"], api_key="FINANCIAL_MODELING_PREP_KEY")
buyback_yields = toolkit.ratios.get_buyback_yield()
Which returns:
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| AAPL | 0.0283 | 0.0421 | 0.0255 | 0.0246 | 0.0222 |
| TSLA | -0.0006 | -0.0013 | -0.0008 | -0.0009 | -0.0001 |
Parameters
get_buyback_yield accepts the following parameters:
- diluted (bool, optional): Whether to use diluted shares in the calculation. Defaults to True.
- rounding (int, optional): The number of decimals to round the results to. Defaults to 4.
- growth (bool, optional): Whether to calculate the growth of the ratios. Defaults to False.
- lag (int | str, optional): The lag to use for the growth calculation. Defaults to 1.
- standardize (bool, optional): Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False.
- trailing (int): Defines whether to select a trailing period. E.g. when selecting 4 with quarterly data, the TTM is calculated.