One must make the distinction between value and price, as explained by Koller, Goedhart and Wessels
(2005, p.433): the company's value is intrinsic value, calculated using appropriate methodology and
based on the present and future generation of cash flows (DCF), is a measure of flow and long-term;
price is the amount to be paid based on market values at the time of negotiation, the latter being a shortterm
measure. The market often behaves irrationally with respect to the performance of assets, Koller,
Goedhart and Wessels (2005, p.88) remind us that investors put too much weight on recent performance
of companies.