Price Versus Value: A Transaction and Litigation Perspective

Business Valuation UpdateVol. 27 No. 3
March 2021
Craig A. Jacobson, MBA
Richard B. Peil
guideline public company method
market approach, public company comparables, public company comps


According to disciples of modern portfolio theory and its efficient market hypothesis, shares of public companies should always trade at a price equivalent to their economic value, making it impossible for investors to experience short-term arbitrage profits. But try to explain that theory to any hedge fund manager or day trader who purchased or sold GameStop Corp.