Old PSG Wind-Down Ltd PSGLQ

Valuation for PSG (Using Graham Valuation)

[ok2buy]

Graham valuation is a very conservative way of valuing a stock. Graham value states the current price should not be more than 15 X the average earnings of the past 3 years. Going back the last 12 quarters, I find the earnings to be in total a $1.61 (US $) or an average of $0.54/year. $0.54 x 15 = $8.10/share (US $). Graham also uses 1.5 x the book value. TD gives a current book value of $8.83 (Cdn. $). $8.83 x 1.5 = $13.25 (Cdn $). If I use the lesser of the 2 values, US $8.10/share and apply a conversion rate of 1.25 for a Cdn. valuation, I get $10.13/share. This is one reason why I believe PSG has been drastically oversold and is worth much more than today's close. My opinion only./ok2buy