valuing the stock

The way i look at a stock for starters is to compare current pe with the average pe over 10years + 2x to allow for the current historically low period of interest rates ...
For FSA av. Pe over 10 yrs. Is 8.0x + 2x = 10.0............ current pe is 8.7
Valuation at av. Pe = 10/8.7 = 1.15 x current price of 1.025 = $1.18
Ie. there is another 15% increase (theoretically) to fair value
FSA has been trading at an av. Pe of 10.0 over the last 2 years in any case so that sort of confirms my rough basis for valuation........ you could probably say that it should be trading at a higher pe than 10.0 given that interest rates have fallen even further over these last 2 years ........

Two further reasons for holding this growth stock are
1.Holding the stock over the last 5 years would have given a total return of 39% per annum and over 10 years, a total return of 19% per annum .......... if this earnings pattern continues the total return over the next 5 years would be ??

2.The excutive directors – tim maher has a 34% share holding and Deborah southern has a 10% shareholding - nothing like self interest to incentivise ........