On several occasions I’ve said, “don’t fall in love with numbers,” and “there are no magic numbers.”
Aswath Damodaran has a great lecture on uTube: Laws of Valuation: Revealing the Myths and Misconceptions
At a minute 40 he says, “Valuation can never just be about the numbers.”
At 22:25 he expands on this part of the presentation
but I think it’s worth while to watch the whole thing, less than half an hour.
Numbers may not be everything, but they do need to make sense.
Numbers aren’t everything and the speaker makes some good points. That being said, every bubble in history has been built around a story that excited the marketplace.
The stories about story stocks are legion.
I am of the opinion that good companies don’t need to be propped up with fantastical stories. Which is not meant to demean the prose associated with a company. But that prose needs to be closer to a documentary than a tall tale.
Your investment horizon also makes a difference. If you are investing for a few days to a few weeks, story can work. If you you are investing for multiple years story is more likely to get you into trouble than the numbers.
Most people have a need to own a story or to disown a story.
Some people take very different looks at stories.