[Verse 1] When you need to value a company today Look around for peers that trade the same way Public companies with similar size Same industry, same market ties Revenue growth and margins aligned Geographic reach of the same kind [Chorus] P-E tells the earnings story EV-EBITDA shows the glory EV-Sales when profits are low Trading multiples help you know Compare the ratios side by side Let the market be your guide [Verse 2] Price to earnings, that's your P-E Stock price over EPS, you see Enterprise value takes it further still Add the debt, subtract cash until You get the total business worth Then divide by what it's giving birth [Chorus] P-E tells the earnings story EV-EBITDA shows the glory EV-Sales when profits are low Trading multiples help you know Compare the ratios side by side Let the market be your guide [Bridge] EBITDA strips away the noise Depreciation's accounting choice Sales multiples for early stage When earnings haven't reached their age Book value for the asset play Price to cash flow shows the way [Verse 3] Select your peers with careful thought Business model can't be fought Growth rates should be similar too Capital structure, debt ratio Remove the outliers from your set The median's your safest bet [Chorus] P-E tells the earnings story EV-EBITDA shows the glory EV-Sales when profits are low Trading multiples help you know Compare the ratios side by side Let the market be your guide [Outro] Market wisdom in the numbers Public trading never slumbers Multiply and find your range Trading multiples help you gauge What the market thinks it's worth Valuation finds its birth
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