financial report

1. You are buying the future profit to be generated in future by investing in this company. It is a good return on this investment.
2. Fair value is only showing this moment of time the market value of the assets and, you are expecting a significant rise in these assets. For example, the fair value of a property is $100 and you are buying this expecting its value will come up to $150 in future. It is a matter of timing of investment.
3. You may be buying out your competitor in a market e.g. garment. You can get more profit due to a lesser competition and thus have dominance in the market share and goodwill standing, a more prominent leader in this industry sector