The problem is that with long term return structures (such as long term R&D), there is no feasible way to arbitrage away wrong prices. So prices can diverge a long way from fundamental value.
This issue happens most visibly with the overall stock market level which reguarly and blatantly violates any kind of rational discounted cash flow e.g. in the dot.com era.
This issue happens most visibly with the overall stock market level which reguarly and blatantly violates any kind of rational discounted cash flow e.g. in the dot.com era.