15 Cent SWM share price = 3 times current earnings - Momentum is beginning!, page-129

thanks highpriced, you are correct that Gray Televison is much more speculative than SWM and the key issue is the high debt load. Despite that its annual cash flow generation (averaged across the seasonality with electoral advertising) is around its market cap. The debt has remained high due to two major acquisitions and with this debt level to take a position (mine is quite small compared to the higher portfolio allocation to SWM because of these reasons), I looked at the interest rate hedging, maturity profiles and debt structures help to re. Overall debt costs are quite low from the hedging and there are no significant debt maturities until 2027. The trading of debt below par has allowed recent repurchases (debt repayment) at attractive levels around 90% of outstanding face value.

i think we can agree the key takeout is these type of industry comparisons is helpful to highlight the lower risk from the reduced debt levels of SWM and the attractive peer comparison on valuation metrics glo bally.

As always appreciate your thoughts, I find it very helpful to have someone else that looks in detail and is willing to take a counter view. That assists in the rigour of decision making and review of opportunities.