[Verse 1] When private equity wants to buy They need to know what firms are worth Two methods help them justify The price they'll pay to claim their berth Comparables look side by side While DCF looks deep inside [Chorus] Compare and Calculate, that's the way C-O-M-P-S find similar plays D-C-F discounts future cash Two methods help you make the math Value companies the PE way Compare and Calculate today [Verse 2] Comparables start with finding peers Same industry and similar size Look at their multiples through the years Price to earnings, enterprise Take the average, multiply That's your target company's high [Chorus] Compare and Calculate, that's the way C-O-M-P-S find similar plays D-C-F discounts future cash Two methods help you make the math Value companies the PE way Compare and Calculate today [Verse 3] DCF takes a different route Projects cash flows year by year Then discounts back to find the loot With WACC rate to make it clear Terminal value at the end Add it up, that's what you'll spend [Bridge] Market multiples can mislead When markets boom or markets fall DCF shows intrinsic need But forecasts might not work at all Use them both to check your work Where the values meet and lurk [Chorus] Compare and Calculate, that's the way C-O-M-P-S find similar plays D-C-F discounts future cash Two methods help you make the math Value companies the PE way Compare and Calculate today [Outro] PE professionals always know Two methods make their money grow Compare the comps and discount flows That's how valuation goes
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