In this article, Alexandre LANGEVIN (ESSEC Business School, Global Bachelor in Business Administration (BBA), 2022-2026) explains the Shiller P/E ratio, also known as the CAPE ratio: a valuation tool that adjusts for the business cycle to give a more reliable picture of whether equity markets are cheap or expensive. Introduction Every investor knows the price-to-earnings … Read more
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
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
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
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
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
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 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
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
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 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
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
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
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
In this article, Alexandre LANGEVIN (ESSEC Business School, Global Bachelor in Business Administration (BBA), 2022-2026) explains how duration and convexity allow investors and risk managers to measure and anticipate how bond prices react to changes in interest rates, and why the distinction between the two matters in practice. Introduction Bond markets sit at the heart … Read more
Is it possible to be right too early? In the world of finance, the answer is often yes. We frequently assume that if our analysis is sound, and if the data is on our side, profit is inevitable. However, history is littered with brilliant minds who correctly identified a market bubble, but got crushed by … Read more
In any asset management class, students are taught that diversification is a key to unlock mathematically optimal risk-adjusted returns. However, Warren Buffett, one of the world’s most successful investors, would beg to disagree: to him, “diversification is protection against ignorance. It makes little sense if you know what you are doing.” In this article, Hadrien … Read more
In this article, Bochen LIU (Queen’s Smith School of Business, BCom 2023–2027; ESSEC BBA Exchange Program, Fall 2025) explains how corporate risk is understood, managed, and priced in practice, drawing on concrete experience from consulting frameworks and financial analysis at the Agricultural Bank of China. What is corporate risk? Corporate risk refers to the uncertainty … Read more
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
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
