With these number I expect earning to be $10.8 in 10 years I expect the stock to be work 10.8*13 = $140 in 10 years I want a 15% return on my investment so I take $140 discount it back today and get $40.04 fair market for the stock.
I bought the stock at 35.75 in August and I am holding on. Taht was before the last earnign report. I was using a higher earning growth rate and P/E for the above calc..
The main input is what growth rate you think this stock will have. I think 15% is accurate based on the business and opportunities in China..