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The Fool ratio it spit back at me was 1.08-not in the buying range at
all. I wasn't able to find 5 year estimates, so relied solely on 2 year

I believe you have calculated correctly. However, the interpretation I infer is that the stock is fairly valued (note: especially after its recent drop). Fairly valued means to me fairly priced and therefore a potential buy.

Note that the price would have to get into the 20's before approaching the "undervalued" range.
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