MFG Fair Value, page-130

I just did a valuation of PTM using "ROE/expected rate of return x book value"
Here is what I got
Av ROE over 8 years = 51%
expected rate of return = 12%
Book = $0.59
interestingly this company does not reinvest any of it earnings ie it pays out 100% as divi which makes calculations easy. No Barenjoey or Guzman and Gomez I suppose.
Payout ratio = 100%
.51/.12 = 4.25
which gives you the multiple
4.25 x 0.59 = $2.51
margin of safety of 25% = $1.88
the stock is trading at $2.70 today, basically overvalued by 44%
MFG is $21.24. Intrinsic value is $24.82. UNDERVALUED by 17%
which would you prefer PTM or MFG now????