What is the expected impact of the DKK 2.25 billion buyback on JYSK's earnings per share and valuation multiples?

The DKK 2.25 billion repurchase will pull a modest but meaningful amount of stock out of circulation – roughly 1 %–1.5 % of JYSK’s free‑float, given the company’s market‑cap of about DKK 150 bn. By cutting the share count, the earnings per share (EPS) will rise automatically, even if net profit stays flat. For a typical 2024‑2025 net‑income level of DKK 5–6 bn, the buy‑back translates into an EPS uplift of roughly 0.05–0.07 DKK per share (≈4‑6 % increase). Because analysts price the stock on a forward P/E, the higher EPS will push the “earnings‑adjusted” multiple down if the market price does not move – a built‑in value‑add for shareholders. In practice, the market usually reacts to a buy‑back by bidding the stock higher, so the price appreciation often offsets the EPS‑driven compression, leaving the forward P/E roughly unchanged but the absolute price level higher.

From a trading standpoint, the announcement signals a short‑run catalyst: the “safe‑harbour”‑compliant repurchase removes dilution risk and signals confidence from Jyske Bank in JYSK’s cash generation. Expect a modest upside in the next 2‑4 weeks as the market digests the reduced share base and the implied EPS boost. A prudent play is to go long on the dip‑risk‑adjusted price (if the stock has already rallied on the news) and target a 3‑5 % upside, which aligns with the incremental EPS benefit. If the price overshoots the implied EPS‑adjusted valuation, a partial profit‑taking or a short‑cover stop could be set just above the recent high, preserving the upside while guarding against a quick reversal once the buy‑back flow dries out.