...oh, and to answer your question, if my numbers hold true, my fair value is what the stock is worth right NOW. This is what is meant by a discounted cash flow model.
One values the stock based on all the CASH (after all expenses) the company will generate as an on going concern, discounted back to the present.
So, yesterday, Yahoo!'s stock closed at $27.34 per share -- but each share is actually WORTH $34.32 per share. However, you want to buy at a discount to that fair value. In my case, a 40% discount. This large discount helps to prevent capital losses, if again, my numbers don't hold up.