So the part that this doesn't cover is any sort of earnings multiple/discount. For simplicity assume the $10M was earnings over the last year. Your EPS is $10. After your buyback, assuming all things equal, your same $10M now makes your EPS $11.11.
The point there is the mechanics of buybacks make more sense when you think of how they behave marginally, and what it says about how the company's future earnings are being discounted.
The point there is the mechanics of buybacks make more sense when you think of how they behave marginally, and what it says about how the company's future earnings are being discounted.