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I've been a frequent visitor to this site for a while now but have hung out in the background... now I have a question maybe someone can help me with.
I understand that the PEG ratio can help determine whether a small-cap (high-growth) stock's price is under-valued, over-valued, or just about right based on growth rates.
I also understand the Rule-Maker suggestions on how to pick a strong large-cap stock that's likely to return good earnings (regardless of the current stock price right now). But as a value investor, what are some ways to determine what a large-cap stock's price should be at? In other words, how do I tell if IBM's stock price is undervalued right now? Is there a method or calculation that would tell me that $89 (for example) is a fair price for their stock? Any help would be appreciated!!!
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