Overview

AG
Recommendation: BUY

American Greetings Corp.

Comprehensive valuation analysis indicates significant undervaluation. Stock repurchase program is strongly recommended.

Implied Upside+125.4%vs. Current Price $12.51
Current Share Price
$12.51
Market Close
Implied Value (Avg)
$28.20
125.4%Upside
Enterprise Value (DCF)
$1207.25
Million USD
WACC
10.3%
Cost of Capital
Valuation Comparison
Intrinsic value vs. Market price across different methodologies
$0$9$18$35Current PriceDCF ValueEBITDAMultiple
Strategic Recommendation
Action plan for management

Repurchase Shares

Allocate $85.66M excess cash

Repurchase Volume6.85M Shares
% of Outstanding17.9%
ImpactHighly Accretive
Free Cash Flow Projections (Bullish Scenario)
Projected unlevered free cash flow 2012-2015
20112012201320142015$0M$35M$70M$105M$140M