Damodaran Wants Everyone To Calm Down About Stock Buybacks

Buybacks have been on the rebound since 2013, now reaching the highest point since the financial crisis sparking a slew of articles trying to figure out whether we should be worried about this returning trend. As something of a palliative to calm down investors, NYU Stern School of Business professor Aswath Damodaran focuses on how buybacks affect corporate valuation in his recent blog post and decides that both “the shameless boosters of buybacks, who treat it as a magic bullet, at one extreme, and the equally clueless Cassandra chorus, who view it as the market equivalent of the Ebola virus,…