[Verse 1] When investors hunt for treasure in the market's maze Equity valuation cuts through the haze Three pillars stand like ancient towers tall Dividend discount, comparables, and intrinsic call Present value whispers secrets from tomorrow Cash flows discounted, easing sorrow [Chorus] DDM-PV, that's the key Dividends discounted, what you'll see Risk and return dance hand in hand Beta measures trembling in the sand Gordon's growth model, steady stream CAPM pricing the investor's dream [Verse 2] Gordon's formula paints eternal scenes Dividends growing like perennial greens D-one divided by R minus G Required return less growth velocity But growth can't race beyond return's gate Or mathematics seals a twisted fate [Chorus] DDM-PV, that's the key Dividends discounted, what you'll see Risk and return dance hand in hand Beta measures trembling in the sand Gordon's growth model, steady stream CAPM pricing the investor's dream [Bridge] Two-stage models capture shifting tides High growth mellows as time subsides Terminal value crowns the calculation Present worth through careful navigation Risk-free rate plus beta's multiplication Market premium drives compensation [Verse 3] CAPM builds the fortress of required return Risk-free foundation where safe harbors churn Market risk premium rewards the brave Beta coefficients the covariance wave Systematic danger can't diversify away While specific risks wash out in portfolio's sway [Chorus] DDM-PV, that's the key Dividends discounted, what you'll see Risk and return dance hand in hand Beta measures trembling in the sand Gordon's growth model, steady stream CAPM pricing the investor's dream [Outro] Assumptions matter, test sensitivity Growth rates, discount rates, probability Equity valuation, science meets art Mathematics married to the beating heart
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