I agree that bike is in sad shape. If your buying I would say $100 tops. Your going to have give it a complete overhaul (can you do the work yourself? if not skip the bike) and cleaning/waxing. tires, chain, cables, bartape, brake pads/blocks. It would certainly be a labor of love.

If your selling ask $200 and consider taking anything over $150.

As to the Reynolds decal, I am no Peugeot expert but I don't think you can say "you can see where a reynolds decal was" because you don't know what was there. It is the rements/shadow of a decal but it could just as easily be a Peugeot tubing decal or a Vitus one.

Someone here runs a vintage peugeot website, I would try and spend some time there looking up just what model it is.

Just where is this bike? Most of on this forum are from the US and the bikes we have here are different from Europe, Canada, and other areas. That could account for some of the confusion on identifying the bike.