[Verse 1] When companies need valuation, three pathways emerge clear Discounted cash flows whisper secrets in your ear Relative multiples compare peers side by side Asset-based methods when fundamentals can't hide [Chorus] DDM counts dividends, FCFE flows to equity FCFF serves the firm, residual income sets you free P-E ratios dancing, enterprise value calls Sum-of-the-parts revealing what the market overlooks and stalls [Verse 2] Gordon's growth model assumes dividends never cease Two-stage and three-stage capture changing growth's release H-model bridges transitions with a smooth decline While FCFE takes cash flows that shareholders define [Chorus] DDM counts dividends, FCFE flows to equity FCFF serves the firm, residual income sets you free P-E ratios dancing, enterprise value calls Sum-of-the-parts revealing what the market overlooks and stalls [Verse 3] Trailing P-E backwards, forward P-E predicts ahead Price-to-book measures assets, price-to-sales instead EV-EBITDA strips away the capital maze Enterprise-to-sales cuts through accounting's haze [Bridge] Holding companies fragment, natural resources drill deep Distressed situations when balance sheets can't sleep Clean surplus relation keeps the math aligned tight Economic value added makes residual income bright [Verse 4] Comparable selection demands matching industry peers Adjusted book value when liquidation nears Choose your model wisely based on company traits Mature pays dividends, growth reinvests and waits [Chorus] DDM counts dividends, FCFE flows to equity FCFF serves the firm, residual income sets you free P-E ratios dancing, enterprise value calls Sum-of-the-parts revealing what the market overlooks and stalls [Outro] Three approaches converging on intrinsic worth's true face Discounted flows and multiples, assets find their place
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