Ann: Funds Under Management - March 2024, page-9

No. Price is purely the consequence of supply versus demand. As we know, both of these (especially demand) can fluctuate for a host of reasons, including (though not exclusively) factors related to crowd psychology. In brief, psychology dictates whether the crowd's focus is on long term factors (usually associated with anticipated business & economic performance) or short term factors (like fears of price falls, or excitement about possible corporate action, to give two examples).

Unless you believe a fair price fluctuates with whims of psychology, then it cannot be assumed that price is always fair.