SWM - Mark Moore

Price/Free Cash FlowCompany Market Cap FCF P/FCF ComputedPriceSWM 780.554 -61.8 N/AAlliance One 409.244 -19.8 -20.66Universal 1,080.414 111.17 9.72AverageN/AMarket Cap and EBITDA in millionsWe cannot compute a price for P/FCF because of a negative industry average.ConclusionAs you can see from the results the method of comparables it is hard to get an accuratepicture from this form of valuation. From the ratios that we were able to compute, we wereable to determine that Schweitzer-Mauduit is severely overvalued to our stated price onNovember 2, 2009 of $50.95 as well as our15% margin of safety of $43.31. Our closest ratio toreaching the $43.31 mark was the P/B ratio of $25.90. Also no prices fell in between the 15%margin of safety of $43.31 and $58.59. Again, these ratios are not based on financial theory.This should be taken into consideration when valuing a firm.165