cintrix, as a growth investor. To make sure we are clear. I believe I'm looking for the PPS the stock should be trading at based on just it's net worth. For example...
Assets $100 - Liabilities $30 = Net Worth $70
If this company were to close down today, it would be worth $70.
Net Worth $70 / Outstanding Shares 5
This company is valued at $14 a share, but the current price per share is $7. Making this company under valued, by $7
Am I correct on this part? This is Market value?
So to follow up on your response. In this formula, I need to use long-term assets so I also need to use long-term liabilities. I have been using both long term numbers and haven't found an under valued stock.