[Verse 1]
When stocks dance wild across the screen
Three ratios cut through market dreams
Price-to-earnings shows the multiple you pay
For every dollar that the company made today
Divide the share price by earnings per share
High or low numbers floating in the air
[Chorus]
P-E, P-B, P-S - the holy trinity
Price divided by the fundamentals we can see
Earnings, book value, sales revenue
These ratios whisper what the market thinks is true
Are you paying fair or getting fooled?
Let the numbers be your valuation tool
[Verse 2]
Price-to-book compares the market's bet
Against the assets minus every debt
Book value per share is accounting's tale
While market price might soar or fail
When P-B sits below the number one
The market thinks the assets weigh a ton
[Chorus]
P-E, P-B, P-S - the holy trinity
Price divided by the fundamentals we can see
Earnings, book value, sales revenue
These ratios whisper what the market thinks is true
Are you paying fair or getting fooled?
Let the numbers be your valuation tool
[Bridge]
Price-to-sales ignores the profit game
Just revenue against the stock price claim
Sometimes earnings hide or disappear
But sales show traction crystal clear
Compare these ratios to industry peers
The relative picture makes it clear
[Verse 3]
A P-E of thirty might seem steep
But tech stocks trade where multiples leap
While banks and utilities tend to trade
At single digits, conservatively made
Context matters more than absolute
Industry standards help you compute
[Final Chorus]
P-E, P-B, P-S - the holy trinity
Price divided by the fundamentals we can see
Earnings, book value, sales revenue
These ratios whisper what the market thinks is true
High ratios bet on future growth
Low ratios question the company's oath
[Outro]
Three simple fractions, three windows to peer
Through market madness, making value clear