Introduction

Greetings Card
and other related Sapirstein Family
products

Rights to
2nd Largest Player
Characters

Additional
Revenues by
licensing rights
 Hallmark- $4 Billion Revenues
Industry
Industry contracted 9% since 2005
Conditions
Moved to Electronic Cards Industry

Online cards

Kiosks-Custom Cards

Survey result-52% respondents

 1st January, 2012
Financial Fiscal Year ends in February
Information
Share Price $12.51
Revenues $1.7B
P/E- 6x
EV/EBITDA- 3.5x
Market/ Book < 1
 Is 3.5x value justifiable? If not, what would be
the value of the multiple and corresponding
share price?
Problems?
Financial Forecast 2012-2015? Company Value
and Share Price?

Key Drivers for Valuation

Should it buy $75M shares? What should be the

share price?
 Bullish View
Financial
Forecast
Bearish View

Average View

After Repurchase View

 Current Shares- 38.32M

Share
Repurchase Share Price- $12.51

Share Repurchase- $75M

Total Repurchased Shares- 5.99 M

Weighted Repurchased Shares- 1M

 Company should buyback the shares
because in every case share is undervalued
Recommendations
In real case, the company’s share price
actually rose

Target younger customers

Dealing in the same sector