The people who benefited from the high IPO price were those who already had shares, because they could sell them high.
I think price levels have been systemically detached from P/E ratios for a long time. My impression is that market averages are set by indirect control of liquidity levels, by central banks acting according to political criteria. So the “rational” price level might be set by P/E ratio, adjusted by a political multiplier.
The people who benefited from the high IPO price were those who already had shares, because they could sell them high.
I think price levels have been systemically detached from P/E ratios for a long time. My impression is that market averages are set by indirect control of liquidity levels, by central banks acting according to political criteria. So the “rational” price level might be set by P/E ratio, adjusted by a political multiplier.