Search Results for: valuation

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

Leverage in LBOs: How Debt Creates and Destroys Value in Private Equity Transactions

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In this article, Ian DI MUZIO (ESSEC Business School, Master in Finance (MiF), 2025–2027) explores the economics of leverage in leveraged buyouts (LBOs) from an investment banking perspective. Rather than treating debt as a purely mechanical input in an Excel model, the article explains—both conceptually and technically—how leverage amplifies equity returns, reshapes risk, affects pricing, … Read more

Quantifying the Gap: Why AI Productivity will fail to Move the Market

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In this article, Andrei DONTU (ESSEC Business School, Global Bachelor in Business Administration (GBBA) 2025-2026) explains the gap between the productivity gains and the unrealized returns of the investors regarding the investments in AI. Introduction In the current market landscape, “Artificial Intelligence” has become the magic word used to justify almost any valuation. The narrative … Read more

Modeling Asset Prices in Financial Markets: Arithmetic and Geometric Brownian Motions

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In this article, Saral BINDAL (Indian Institute of Technology Kharagpur, Metallurgical and Materials Engineering, 2024-2028 & Research assistant at ESSEC Business School) presents two statistical models used in finance to describe the time behavior of asset prices: the arithmetic Brownian motion (ABM) and the geometric Brownian motion (GBM). Introduction In financial markets, performance over time … Read more

Understanding WACC: a student-friendly guide

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In this article, Daniel LEE (ESSEC Business School, Global Bachelor in Business Administration (GBBA) – 2023-2027) explains the Weighted Average Cost of Capital (WACC). Introduction The Weighted Average Cost of Capital (WACC) is one of the most important concepts in corporate finance and valuation. I know that for some students, it feels abstract or overly … Read more

Understanding the Almgren-Chriss Model for Optimal Trade Execution

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In this article, Bryan BOISLEVE (CentraleSupélec – ESSEC Business School, Data Science, 2023-2025) explains the Almgren-Chriss model, a fundamental framework in quantitative finance for optimal execution of large trading orders. Introduction Imagine you are a portfolio manager at a large asset management firm, and you need to sell 1 million shares of a stock. If … Read more

EBITDA: Uses, Benefits and Limitations

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In this article, Alberto BORGIA (ESSEC Business School, Global Bachelor in Business Administration (GBBA), Exchange student, Fall 2025) explains about EBITDA, how it can be used, its advantages and disadvantages. Introduction Earning Before Interest, Taxes, Depreciation and Amortization (EBITDA) is ones of the most used financial metric and its goal is to understand a company’s … Read more

My Experience as a Wealth Management Intern at Nextam Partners

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In this article, Alberto BORGIA (ESSEC Business School, Global Bachelor in Business Administration (GBBA), Exchange student, Fall 2025) shares his professional experience as a Wealth Management Intern at Nextam Partners. About the company During the summer between my second and third year of my Bachelor’s degree, I had the opportunity to join the Nextam Partners … Read more

How to approach a stock pitch

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In this article, Daniel LEE (ESSEC Business School, Global Bachelor in Business Administration (GBBA) – 2023-2027) explains how to approach a stock pitch. Introduction Are you preparing for an interview for investment banking? Hedge fund? Or just participating in a finance competition? Learning how to realize a stock pitch is one of the most useful … Read more

Implied Volatility and Option Prices

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In this article, Saral BINDAL (Indian Institute of Technology Kharagpur, Metallurgical and Materials Engineering, 2024-2028 & Research assistant at ESSEC Business School) explains how implied volatility is calculated or extracted from option prices using an option pricing model. Introduction In financial markets characterized by uncertainty, volatility is a fundamental factor shaping the pricing and dynamics … Read more

The Private Equity Secondary Market: from liquidity mechanism to structural pillar

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In this article, Adam MERALLI BALLOU (ESSEC Business School, Global Bachelor in Business Administration (GBBA), 2021-2026) introduces the Secondary Market in Private Equity. Introduction Over the past decade, the private equity secondary market has undergone a profound transformation. Originally conceived as a marginal liquidity outlet for constrained investors, it has progressively become a central component … Read more

My internship experience as a Finance Intern at Gerresheimer

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In this article, Tibor HAUER (ESSEC Business School, Global Bachelor in Business Administration (GBBA), Exchange semester 2025) shares his professional experience as a Finance Intern at Gerresheimer. About the company Gerresheimer is a globally operating partner for the pharmaceutical, biotech and cosmetics industries and plays an important role in the international healthcare value chain. As … Read more

Risk-based Audit : From Risks to Assertions to Audit Procedures

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In this article, Iris ORHAND (ESSEC Business School, Global Bachelor in Business Administration (GBBA), 2021-2026) shares a technical article about risk-based audit. Introduction Financial statements are not audited by “checking everything”. In practice, auditors use a risk-based approach: they identify what could materially go wrong, link those risks to specific financial statement assertions, and then … Read more

Inside retail banking: My apprenticeship at Crédit Agricole des Savoie

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In this article, Mathilde JANIK (ESSEC Business School, Global Bachelor in Business Administration (GBBA), 2021-2025) shares her experience as a two-year apprentice in the retail banking sector at Crédit Agricole des Savoie. Introduction This article is aimed at presenting my apprenticeship as a personal banker within Crédit Agricole regional bank Crédit Agricole des Savoie and … Read more

“The stock market is filled with individuals who know the price of everything, but the value of nothing.” – Philip Fisher

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Financial markets are filled with numbers that move every second, yet many investors miss the most important insight: true value often lies hidden beneath the surface of the price. In this article, Hadrien Puche (ESSEC, Grande École, Master in Management, 2023-2027) comments on this quote by Philip Fisher, who reminds us that understanding a stock’s … Read more

My work-study experience in the Middle Office at Amundi

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In this article, Clara COMBELLES (ESSEC Business School, Global Bachelor in Business Administration (GBBA), 2021-2025) shares her professional experience as a Middle Office analyst at Amundi, Europe’s leading asset manager. About the company Amundi is the largest asset manager in Europe and among the top ten worldwide. Created in 2010 through the merger of Crédit … Read more

The “lemming effect” in finance

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In this article, SHIU Lang Chin (ESSEC Business School, Global Bachelor in Business Administration (GBBA), 2024-2026) explains the “lemming effect” in financial markets, inspired by the animated movie Zootopia. About the concept The “lemming effect” refers to situations where individuals follow the crowd unthinkingly, just as lemmings are believed to follow one another off a … Read more

Time value of money

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In this article, SHIU Lang Chin (ESSEC Business School, Global Bachelor in Business Administration (GBBA), 2024-2026) explains the time value of money, a simple but fundamental concept used in all areas of finance. Overview of the time value of money The time value of money (TVM) is the idea that one euro today is worth … Read more

Deep Dive into evergreen funds

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In this article, Emmanuel CYROT (ESSEC Business School, Global Bachelor in Business Administration (GBBA), 2021-2026) introduces the ELTIF 2.0 Evergreen Fund. Introduction The asset management industry is pivoting to democratize private market access for the wealth segment. We are moving from the rigid Capital Commitment Model (the classic “blind pool” private equity structure) to the … Read more