soho I'm not sure how you get 58 cents using the NPV method either.
working with your numbers i get the following:
let's assume for simplicity that now is time = 0. we take your initial cost of $0.80/share.
5% discount rate
10 cents for the first year so discount this back one year we get $0.0952/share.
then for the 19c/share for 20 years, if I treat this like an annuity and I discount it back one year I get $2.255/share.
summing up all the parts i come up with $1.55/share which is still over 2.5 times your figure. so yes, it seems like the company is undervalued atm not to mention the above doesn't take into account any growth opportunities in the future.
All IMHO.
soho I'm not sure how you get 58 cents using the NPV method...
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