the math doesn't matter. stocks don't trade based on valuations and shorting based on valuations is suicide, especially in a bull market.
if you don't like how this market values stocks you can always sit on the sidelines for a for years and watch in disbelief.
When the bear market comes, I'm sure you'll be able to get lulu for a price you consider fair based on your arithmetic, but it sounds like right now you're living in the future while the present passes you by.
Good post and you are correct. Lots of momentum stocks have gone nuts recently. While in many cases the fundamentals don't support the valuations in a bottoms up type of analysis that could last for a long time so some times it's better to just get out of the way.
Even with an additional 500 stores, each store would have value of over $16,000,000 - an astounding amount. I cannot think of even 1 retailer with small rented stores that carry a value of 16 million. Can you think of one?