[secabeen]

I would extend this concept to all non-cash financial assets. All of what you wrote above applies to Tesla shares, or Ukrainian real estate, or anything that's not currency. It would still be incredibly useful, but it's also based so much on psychology, I don't know if there's a mathematical way to calculate it, like there was Black-Sholes for futures.

A concrete calculation for this would revolutionize finance.

[neuroma]

Agree, but, mind bender... this relationship also applies to currencies. A useful statistic is the volume transactions required to shift the price 2%, looking at an open order book. It gives you a notion of the available liquidity. It is liquidity that matters, as it allows influx and efflux without causing inelastic price movements.

[Animats]

There's book value and price/earnings ratio. Valuation of operating companies is well understood. Buffett buys on that basis.