[Verse 1] When market cap tells just one story Debt buried deep beneath the glory Enterprise value paints complete Adding borrowed funds to equity's beat Market value plus net debt combined Shows the total price you'd really find [Chorus] EV over EBITDA, sales ratios shine Strip away the capital structure design Enterprise multiples level the field When leverage differences are revealed EV-EBITDA, EV-Sales in your mind Compare across companies of every kind [Verse 2] EBITDA strips the funding choice Interest payments lose their voice Same operations, different loans Now the multiples find common zones Ten times EBITDA, five times sales True comparison never fails [Chorus] EV over EBITDA, sales ratios shine Strip away the capital structure design Enterprise multiples level the field When leverage differences are revealed EV-EBITDA, EV-Sales in your mind Compare across companies of every kind [Bridge] Cash subtracts from borrowed weight Enterprise value calculates Operating metrics tell the tale When debt levels might derail Simple comparisons between Companies with different scenes [Verse 3] Revenue multiples show the top How much per dollar sales you'll swap EBITDA digs a layer down Before the interest comes around Both reveal what operations earn Before financing patterns turn [Chorus] EV over EBITDA, sales ratios shine Strip away the capital structure design Enterprise multiples level the field When leverage differences are revealed EV-EBITDA, EV-Sales in your mind Compare across companies of every kind [Outro] Enterprise value shows the whole Beyond what equity holders control Multiples that truly compare When capital structures aren't fair
← Price Multiples: Book, Sales, and Cash Flow | Comparable Company Analysis →