Search Results for: valuation

Valuation in Niche Sectors: Using Trading Comparables and Precedent Transactions When No Perfect Peers Exist

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In this article, Ian DI MUZIO (ESSEC Business School, Master in Finance (MiF), 2025–2027) discusses how valuation practitioners use trading comparables and precedent transactions when no truly “perfect” peers exist, and how to build a defensible valuation framework in Mergers & Acquisitions (M&A) for hybrid or niche sectors. Context and objective In valuation textbooks, comparable … Read more

DCF vs. Multiples: Why Different Valuation Methods Lead to Different Results

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In this article, Cornelius HEINTZE (ESSEC Business School, Global Bachelor in Business Administration (GBBA) – Exchange Student, 2025) explains how the usage of different valuation methods can lead to different outcomes and how to use them. Why this is important In finance valuation is always present and it is not only a mechanical exercise. Analysts … Read more

The role of DCF in valuation

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In this article, Roberto RESTELLI (ESSEC Business School, Master in Finance (MiF), 2025–2026) explains the role of discounted cash flow (DCF) within the broader toolkit of company valuation—when to use it, how to build it, and where its limits lie. Introduction to company valuation Valuation is the process of determining the value of any asset, … Read more

The Two-Stage Valuation Method and its challenges

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In this article, Cornelius HEINTZE (ESSEC Business School, Global Bachelor in Business Administration (GBBA) – Exchange Student, 2025) explains how the two-stage valuation model and the segmentation in growth stage and stable phase impact the valuation of companies and which problems tend to arise with the use of this model. Why this is important The … Read more

Valuation methods

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In this article, Andrea ALOSCARI (ESSEC Business School, Global Bachelor in Business Administration (GBBA) – 2024-2025) explains about three fundamental valuation methods—Comparable Companies Analysis, Precedent Transactions Analysis, and Discounted Cash Flow (DCF) Analysis—and their role in achieving successful deal outcomes. Which are the main valuation methods? At the heart of M&A, or Mergers and Acquisitions, … Read more

Understanding Debt Ratio & Its Impact On Company Valuation

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In this article, Anant JAIN (ESSEC Business School, Grande Ecole – Master in Management, 2019-2022) explain the debt ratio and its importance in firm valuation. Introduction In financial analysis, calculating and even evaluating a company’s debt ratio is essential for assessing its financial stability and valuation. The debt ratio provides insights into how a company … Read more

Multiples valuation method for stocks

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Multiples valuation method for stocks In this article, Jorge KARAM DIB (ESSEC Business School, Master in Strategy and Management of International Business (SMIB), 2024-2025) introduces the method to evaluate stocks called “multiples valuation”. How much should a stock be worth? Valuing stocks is a complex yet essential endeavor for investors seeking to make informed decisions … Read more

Understanding the Gordon-Shapiro Dividend Discount Model: A Key Tool in Valuation

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In this article, Isaac ALLIALI (ESSEC Business School, Bachelor in Business Administration (BBA), 2019-2023) explains about the Gordon-Shapiro Dividend Discount Model, which is a key tool in valuation. Introduction The Gordon-Shapiro Dividend Discount Model, also known as the Gordon-Shapiro formula and the Gordon Growth Model, is a central tenet in finance. It provides investors and … Read more

Bond valuation

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In this article, Georges WAUBERT introduces you to bond valuation. Investors seek to determine how the different characteristics of a bond can influence its intrinsic value in order to know whether it is a good investment or not. To do this, they will look at the theoretical value of a bond, i.e. its present value. How … Read more

Asset valuation in the real estate sector

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Asset valuation in the Real Estate sector This article written by Ghali El Kouhene (ESSEC Business School, Global BBA, 2019-2022) discusses the valuation methods in the real estate sector. Definition of a real estate Real estate is a property, land, buildings, air rights above the land (with certain limitations) and underground rights below the land. … Read more

Approche pédagogique de SimTrade (Partie 2) : objectifs d’apprentissage et évaluation

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L’approche pédagogique de SimTrade repose sur deux piliers : La liberté d’apprentissage La définition d’objectifs d’apprentissage précis et leur évaluation Ce deuxième article traite du couple objectif-évaluation. Il présente notamment l’ingénierie pédagogique développée pour évaluer les participants, ingénierie qui utilise les travaux sur la taxonomie de Bloom. L’évaluation dans SimTrade Les certificats SimTrade sont des … Read more

Evaluation : utilisation de la taxonomie de Bloom dans SimTrade

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SimTrade, pour la construction de l’évaluation des participants dans les certificats, s’appuie sur la taxonomie de Bloom. Mais la taxonomie de Bloom, c’est quoi ? Benjamin Bloom (1913-1999) est un psychologue américain spécialisé en pédagogie. Ses travaux de recherche menés à l’Université de Chicago dans les années 1950 sont considérés comme d’importantes contributions au classement … Read more

Mode d’évaluation dans les certificats SimTrade

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Certificats SimTrade : produits structurés de formation sur les marchés financiers Les certificats SimTrade sont des produits structurés pédagogiques qui assemblent trois éléments d’apprentissage : les formations, les simulations et les concours. Au travers d’un certificat, SimTrade vous propose de vivre une histoire qui tient en trois mots : apprendre avec des formations (savoir), pratiquer … Read more

Deal Structuring in Investment Banking: How Earn-Outs, Rollover Equity, and Contingent Consideration Shape M&A Outcomes

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In this article, Ian DI MUZIO (ESSEC Business School, Master in Finance, 2025–2027) examines how investment banks structure consideration in M&A deals through earn-outs, rollover equity, and other forms of contingent consideration, and how these tools redistribute risk and return between buyer and seller. Context and objective In most introductory valuation courses, M&A is presented … Read more

My Internship Experience as an Investment Intern at Kylin Hall Capital

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In this article, Bochen LIU (Queen’s Smith School of Business, BCom 2023–2027; ESSEC BBA Exchange Program, Fall 2025) shares his professional experience as an Investment Intern at Kylin Hall Capital. About the company Kylin Hall Capital is a Beijing-based venture capital firm investing in early- to growth-stage technology companies in China. The firm focuses on … Read more

“Investing is stupid if you’re more worried about short-term volatility than long-term quality.” – Charlie Munger

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Investing is often a battle with our own emotions. We see prices rise sharply and crash just as fast, and this can lead to very bad investment decisions. However, Charlie Munger’s wisdom comes once again handy, to remind us to avoid overlooking at prices all day-long, because “Investing is stupid if you’re more worried about … Read more

The market is a continuously unfolding process of discovery – Peter Steidlmayer

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Financial markets move every second, reacting to every new piece of information, every financial statement, every geopolitical event. Prices rise, fall, move too far, come back again, and for anyone observing from the outside, this constant motion can easily appear chaotic. Yet, behind this apparent disorder lies a deeper structure, a logic shaped by the … Read more

“The stock market is designed to transfer money from the impatient to the patient.” – Warren Buffett

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Financial markets move with a constant rhythm, shaped by news, expectations, and the psychological impulses that influence investors every day. Prices advance, decline, accelerate suddenly, or pause without warning, and to the untrained observer this flow can seem arbitrary or even irrational. This can make it hard for investors to resist the urge of buying … Read more

From IAS to IFRS: How International Accounting Standards Shape Financial Reporting

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In this article, Maxime PIOUX (ESSEC Business School, Global Bachelor in Business Administration (GBBA) – 2022-2026) explains the importance of international accounting standards and highlights the key differences that finance and business students should be aware of. Why International Accounting Standards Financial statements are the primary source of information used by investors, managers, and other … Read more

Beyond price: The wisdom of Warren Buffett and Napoleon Hill on investment and self-growth

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In this article, Mathilde JANIK (ESSEC Business School, Global Bachelor in Business Administration (GBBA), 2021-2025) comments on two quotes that bridge the gap between financial philosophy and personal development: one from the world’s most successful investor, Warren Buffett, and another from the self-help pioneer, Napoleon Hill. These quotes collectively highlight the profound truth that success … Read more