PT - JOURNAL ARTICLE AU - Maria E. de Boyrie AU - Simon J. Pak AU - William W. Welch TI - Are High Stock Market Prices Justified? AID - 10.3905/joi.2004.450758 DP - 2004 Nov 30 TA - The Journal of Investing PG - 67--73 VI - 13 IP - 4 4099 - https://pm-research.com/content/13/4/67.short 4100 - https://pm-research.com/content/13/4/67.full AB - To justify high market prices does not require a radical departure from the traditional valuation model. Extraordinarily high market prices relative to current cash flow can be justified by the discounted cash flow model if both the assumptions of the combination of high supernormal growth rate of cash flows and the length of time supernormal growth rates persist remain unspecified and unquestioned. The model here can be used to analyze high market valuations in terms of the time supernormal growth must last to justify these prices at any given level of growth rate.