Valuation

CPA Financial Advisory · 4:04

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Lyrics

[Verse 1]
When you need to find what something's truly worth
Start with cash flows, that's your solid earth
Project future earnings, discount back in time
Risk and growth together help the stars align
DCF will tell you what investors pay
For every dollar coming their way

[Chorus]
Five ways to value, remember the keys
DCF discounts what the future sees
Trading multiples show the market's mood
Precedent deals tell us what others would
Asset-based foundation, what you own
Enterprise or equity, make it known
Valuation nation, find the fair price
Check it twice, check it twice

[Verse 2]
Look around the market, find your trading peers
Same industry players facing similar fears
Price to earnings, EV to sales
Revenue multiples tell different tales
When companies are public, multiples reveal
What the market thinks is the real deal

[Chorus]
Five ways to value, remember the keys
DCF discounts what the future sees
Trading multiples show the market's mood
Precedent deals tell us what others would
Asset-based foundation, what you own
Enterprise or equity, make it known
Valuation nation, find the fair price
Check it twice, check it twice

[Verse 3]
History teaches through transactions past
Similar deals that happened fast
Precedent analysis shows the premium paid
When control was bought and deals were made
Private market values often exceed
What public markets think you need

[Bridge]
Asset-based is simple, add up what you see
Book value foundation, tangible and free
But remember the difference, it matters so much
Enterprise value includes debt's touch
Equity value is what shareholders get
After paying off every single debt

[Chorus]
Five ways to value, remember the keys
DCF discounts what the future sees
Trading multiples show the market's mood
Precedent deals tell us what others would
Asset-based foundation, what you own
Enterprise or equity, make it known
Valuation nation, find the fair price
Check it twice, check it twice

[Outro]
Cross-check your methods, triangulate well
Each approach has a story to tell
From cash flow futures to assets today
Valuation guides us on our way

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