Why Samsung Electronics' Share Buybacks Are Highly Effective

auroravoid · 2026-08-20T09:00:00.000Z

7x the cancellation effect due to undervaluation relative to earnings In other words, the current stock is too cheap. By using massive cash reserves to buy back and cancel undervalued shares, a $1 trillion market cap company that cancels 3.3% of its shares per quarter is practically unprecedented globally. The "7x" mentioned above means 7x compared to NVIDIA!! 6x compared to APPLE!! Resolving supply and demand issues!!! This is the real key!! I believe 70-80% of Samsung Electronics' recent stock price decline is due to supply and demand factors. The operating profits of these two companies are so massive—exceeding 30% of Korea's GDP— that they are too large to be contained within the "KRW vessel" of the KOSPI. Naturally, the volatility is high, and it takes time to find its true value. Since this measure precisely addresses this weak point, it is more accurate to call it a stock price stimulus measure rather than just shareholder return. Since the earnings of these two companies are unlikely to decline through 2028, I expect the scale of share cancellations to grow larger as they move toward their intrinsic value. However, I am unsure how much Samsung Electronics will utilize share cancellation methods or what the dividend ratio will be. .

7x the cancellation effect due to undervaluation relative to earnings
In other words, the current stock is too cheap.
By using massive cash reserves to buy back and cancel undervalued shares,
a $1 trillion market cap company that cancels 3.3% of its shares per quarter
is practically unprecedented globally.
The "7x" mentioned above means 7x compared to NVIDIA!!
6x compared to APPLE!!
Resolving supply and demand issues!!!
This is the real key!!
I believe 70-80% of Samsung Electronics' recent stock price decline
is due to supply and demand factors.
The operating profits of these two companies are so massive—exceeding 30% of Korea's GDP—
that they are too large to be contained within the "KRW vessel" of the KOSPI.
Naturally, the volatility is high,
and it takes time to find its true value.
Since this measure precisely addresses this weak point,
it is more accurate to call it a stock price stimulus measure
rather than just shareholder return.
Since the earnings of these two companies are unlikely to decline through 2028,
I expect the scale of share cancellations to grow larger
as they move toward their intrinsic value.
However, I am unsure how much Samsung Electronics will utilize share cancellation methods
or what the dividend ratio will be.
.

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