"Expensive" share?

Sometime back, I overheard this conversation:

Jane: Oh, this share's price is now $32. Should I sell it?
John: How much did you buy it for?
Jane: Think it was $18.
John: Wah better sell. It's expensive now.
Jane: Really? I'm reluctant. Moreover, it provides dividends.
John: Better sell.

Interesting. I was tempted to ask John how did he conclude that the share now is "expensive"?

If, for example, during this run up of share price (probably 4-5 years) the company has increased its earnings in similar fashion, is its share price still considered expensive? This points to analysis of its Price-Earning Ratio (P/E ratio).

Moreover, this particular company enjoys a degree of dominance in the market it is in and has been doing so for decades already. It has wide economic moat. It has not been embroiled in any major failings. This points to fundamental analysis.

Is it really wise to sell its share?

To be honest, I can't answer that from a short-term trader point of view. However, for me, as a long-term investor (as I would like to consider myself to be so), I would have held on and enjoy the dividends since I believed the company will still have its wide economic moat at least for the near-to-medium term.
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