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.

No programming experience? With the Finance Toolkit MCP server, AI assistants such as Claude and ChatGPT can calculate the Buyback Yield for you. Just ask in plain English.

Calculate the Buyback Yield in Python

The Buyback Yield is available in 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.

The Ratios module page introduces the module, and the sidebar lists all of its functions.

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