I think you have some things backwards. Let's use VUL as an example.
The market collectively believes VUL is worth $1.645B dollars. VUL has 108M shares on issue.
$1.645B divided by 108M shares gives a share price of $13.31 dollars per share of VUL.
Therefore the market is comfortable paying $13.31 per share because they believe VUL as a company is worth $1.645B dollars right now.
You can apply the same market logic to LTR's valuation as a $3B company and their current share price of $1.62 with 1.91B shares on issue.
For LTR to have a share price of $13.31 would mean the market believes LTR is worth $25B, as MiningRocks69 has pointed out. One day it is very possible that LTR would be seen to be worth that much, but in the next 12 months? Unlikely.
comparison to Vulcan, page-18
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Last
87.5¢ |
Change
0.025(2.94%) |
Mkt cap ! $2.121B | |||
| Open | High | Low | Value | Volume |
| 88.0¢ | 88.5¢ | 85.3¢ | $8.253M | 9.463M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 30489 | 87.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 88.0¢ | 252133 | 14 |
View Market Depth
| Last trade - 16.10pm 09/08/2024 (20 minute delay) ? |
| LTR (ASX) Chart |