How might the buy‑back affect FLSmidth's earnings per share and valuation multiples in the near term?

A share‑buy‑back reduces the number of FLSmidth (A/S) shares outstanding, so—ceteris paribus—its earnings per share will rise even if total net income stays flat. In the near term we can therefore expect a modest “EPS boost” that will be reflected in analysts’ forecasts and the next earnings release. Because the market will price that extra EPS into the equity value, the share price often climbs in the days surrounding the buy‑back announcement. If the price appreciates less than the proportional rise in EPS, the forward P/E multiple will compress (i.e. the stock looks cheaper on a earnings basis). Conversely, if the price climbs in line with the EPS uplift, the P/E will hold steady, indicating the market is simply re‑rating the stock rather than granting a full multiple expansion.

From a technical perspective, the buy‑back provides immediate buying pressure and can generate a short‑term support level around the current market price, especially if the programme is sizable relative to the float. Look for a rise in volume and a tightening of the bid‑ask spread—typical signs of demand absorption. In the short‑run this makes FLSmidth more attractive on a risk‑reward basis, particularly for trend‑following or momentum‑oriented strategies. An actionable edge would be to position long on any breakout above the most recent high (or the buy‑back‑induced support zone), setting a stop just below the prior swing low; upside potential is reinforced by the EPS lift and a likely modest multiple compression, which can translate into a 3‑5 % bump to the next‑quarter price target. Keep an eye on the cash‑flow impact: the repurchase will shrink the balance‑sheet cash buffer, so monitor any signs of liquidity strain that could temper the upside if the programme turns aggressive.