[Verse 1]
When you're looking at a stock to buy
Three magic numbers help you decide
Price to earnings shows how much you pay
For every dollar that the company makes each day
[Chorus]
P-E, P-B, P-S - these three will set you free
Price to earnings, price to book, price to sales you see
Divide the stock price by the number that you need
Valuation ratios help you plant the perfect seed
[Verse 2]
Price to book compares what shares cost today
To the company's net worth shown their balance sheet way
Take the assets minus debts, that's book value true
Divide stock price by book - now what ratio do you view?
[Chorus]
P-E, P-B, P-S - these three will set you free
Price to earnings, price to book, price to sales you see
Divide the stock price by the number that you need
Valuation ratios help you plant the perfect seed
[Verse 3]
Price to sales takes revenue into account
Divide stock price by sales per share amount
When earnings swing or losses make P-E unclear
P-S ratio keeps your analysis sincere
[Bridge]
Lower ratios might mean bargains wait
Higher ratios could mean overpriced fate
Compare to industry peers and historical trends
Smart valuation is where good investing begins
[Chorus]
P-E, P-B, P-S - these three will set you free
Price to earnings, price to book, price to sales you see
Divide the stock price by the number that you need
Valuation ratios help you plant the perfect seed
[Outro]
Three simple ratios, memorize with ease
Fair value hidden in these golden keys