Not all stocks deserve the same valuation.
Some companies consistently trade at premium valuations because of their strong moat, pricing power, high-quality management, scalable business model, superior corporate governance, and long-term growth prospects.
Others remain stuck at lower valuations due to cyclical businesses, weak management, lack of competitive advantages, poor capital allocation, or limited growth visibility.
The market may fluctuate in the short term, but over time, quality usually commands a premium and mediocrity trades at a discount.