Packrat,
Start by looking at its assets and liabilities.Look at the industry it is in and how it differentiates itself.Look at its management and gauge their competence.Determine the debt to equity ratio.Ask yourself if the business is competitive.Look at their fixed costs and how they are managed.Are they astute in the way they manage their revenue base?.Is the business capital intensive?What are their borrowing costs?What are the business future prospects.In short do a Warren Buffett evaluation.The information and data is available you just have to look.If you have invested in a company without some fundamental research then you are foolish with your money.Ask yourself why you hold shares in the business.Ask yourself if your money would provide a better return elewhere.
So, a justification for a valuation of $1.75 without quoting a single number?
Arnold,
I'll give my view once I see Packrat's valuation!