Because the market is not a weighing machine, on which the value of each issue is recorded by an exact and impersonal mechanism, in accordance with its specific qualities.
The market is a voting machine, whereon countless individuals register choices which are the product partly of reason and partly of emotion.
I believe fair value is circa 7-9x FY20e revenue based on the scale, gross margin and the growth trajectory of the business for a market cap of ~$4.55B to ~$5.85B AUD, equating to a fair value share price range of $37 to $48 per share.
The markets are not perfectly efficient in the short term, but they are in the long term.
T.E.P.
$34.10 average price target ++, page-5
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