The last sentence from Teele says it all: while discount/premium to NTA varies, the SP - on average - moves in accordance with the performance of the company's assets.
Likewise as I have learnt from the writings of the great Jack Bogle (founder of the Vanguard group), P/E ratios - i.e. the amount investors are willing to spend on each dollar of earnings - wax and wane but in the long run, share prices are determined by just two factors: dividend yield and earnings growth.
(Note that if a company's P/E ratio increases from 10 to 11, this translates to a 10% increase in that company's share price!)
why do funds underperform the index, page-7
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Last
$7.49 |
Change
-0.060(0.79%) |
Mkt cap ! $9.392B | |||
| Open | High | Low | Value | Volume |
| $7.53 | $7.53 | $7.47 | $2.014M | 268.8K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 10 | 20594 | $7.48 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $7.49 | 390 | 1 |
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| Last trade - 16.10pm 25/07/2025 (20 minute delay) ? |
| AFI (ASX) Chart |