[Verse 1] When private equity needs a price tag But no market trades exist to brag We hunt for cousins in the public sphere Companies that mirror what we hold dear Same industry, same size, same game Revenue streams that sound the same [Chorus] Pick your multiples, make the call P-E ratios standing tall EV to EBITDA's the crown Price to book when assets count Comp-a-rable, comp-a-rable Find the twins that make it clear Comp-a-rable, comp-a-rable Market wisdom in your ear [Verse 2] Select your sample, three to ten will do Screen for liquidity, trading volume too Strip out the outliers that skew your view One-time charges, restructuring's through Calculate the median, not the mean Smooths out the noise in the machine [Chorus] Pick your multiples, make the call P-E ratios standing tall EV to EBITDA's the crown Price to book when assets count Comp-a-rable, comp-a-rable Find the twins that make it clear Comp-a-rable, comp-a-rable Market wisdom in your ear [Bridge] But wait, adjust for what you cannot see Private discount, liquidity's the key Control premium if you run the show Size matters when the numbers flow Normalize the metrics, clean and bright Before you multiply and get your sight [Verse 3] Forward-looking beats the trailing year Growth prospects make the value clear Apply the multiple to private books But question every number where it looks Triangulate with other methods too DCF and precedents give you the view [Chorus] Pick your multiples, make the call P-E ratios standing tall EV to EBITDA's the crown Price to book when assets count Comp-a-rable, comp-a-rable Find the twins that make it clear Comp-a-rable, comp-a-rable Market wisdom in your ear [Outro] When markets speak through public trades The private world finds its fair grades Comparable method lights the way Valuation's art meets market's say
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