geac computer, Benjamin Graham argued that a true buy was at the net asset value per share of a company. By net assets, he was referring to cash, accts rec, invesntories less current liabilities. It is very difficult to find stocks that fit that catagorey
I am not familiar with your formula.
Graham argued that after you calculate a fair price, you must allow a margin of safety to allow for Mr, Market's short term irrational moves.
I do agree that buying C <10x fwd pe is a good entry level for longer term investors. You can also get some comfort by using a discounted earning model. Assuming only a lomg term growth rate of 8%, gives a fair value of $65+