In a not-so-distant memory, sometime in 2018, some investors would recall paying around R450 for a Tiger Brand share. This share price implied a price to book (PB) of 4x and a valuation that surpassed that of Unilever’s. By 2019 the share ended the year trading at around the low R200s range-and the price would slowly dissipate from there. This leaves two questions: firstly, why was the valuation so high? Secondly, what happened to cause such a severe de-rating?

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