they do their due diligence. The ting they are about most is how much margin of safety does the company have, meaning if all is said and done and we wanted to sell the brand excluding cash, just the brand/name, how much could we get for it.
Nike was able to sell Cole Hann for 600M or so to PE, so imagine how much a brand name like UGGS is worth! Let's be conservative and say 900M right now.
So excludng the brand, the market is just giving us 600M morein value or 40% for future cash and future growth! Again, laughable!