Easier than that. Classical stock valuation methods only make sense when the market is composed of financially educated, rational investors who use similar valuation methods. That is an outdated model of the markets though. When you add in algorithm driven trading and a sea of retail investors who are anything but rational, we can see how stock market valuation actually plays out: simple supply and demand. I mean just look at GameStop. Apes wanted bad stock, drove price up and then caught the shorts with their pants down. That was simply supply and demand mechanics. The same can be said for Tesla or a litany of other “overpriced” stocks.