Fair value is what the market wants to pay on the day and not...

Fair value is what the market wants to pay on the day and not one individuals perception of how to calculate simple MC by making equally simplistic comparisons.

When bull markets go crazy market perception changes, the most recent is the height of lithium mania where companies with rock chips were trading +$100m and made many people rich (thank you). Now the Arunta is the hottest resource play in Australia, and another discovery is close with ENR which is trading at $350m MC, is that fair value? the market is saying it is every single day. Should ENR have further success with their discovery then it will trade much higher and the valuation of all other players increases too - Arunta has huge momentum, hence, I believe RCR can hit $100m MC before drilling Avalon and that will be fair value on the day.

And always beware of the Arunta gap when a discovery is made.