Read this article and came out with these conclusions:
1. The company's stock valuation is not a direct measure of how good its CEO is. The stock valuation or more specifically, its P/E is more a function of the market's perception of the company or of the economy as a whole -i.e. in good times, stocks perform better.
2. The economic environment, rather than the decisions its management make or specifically the decisions made by its CEO, is a much more a factor in shaping a company's future or its valuation.
Thanks to Economix
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