Intense, real-world, memorable - gamified simulation training
Intense, real-world, memorable - gamified simulation training
In this Trading Comparables Simulation, participants master the art of valuation by identifying, analyzing, and applying peer multiples to determine a company's true market value in competitive, time-pressured scenarios.
Principles of relative valuation and its applications
Selection of truly comparable companies (peer group selection)
Analysis and normalization of key financial metrics (Revenue, EBITDA, Net Income)
Calculation and interpretation of trading multiples (P/E, EV/Revenue, EV/EBITDA)
Identifying and adjusting for outliers and non-recurring items
Benchmarking against industry and sector averages
Synthesizing analysis into a defensible valuation range
Communicating valuation assumptions and conclusions effectively
The impact of market conditions on comparable multiples
Integrating comps analysis into broader investment banking and research reports
In the simulation, participants will:
Screen and select an appropriate peer group for a target company
Extract and normalize financial data from real-world styled statements
Calculate a full suite of trading and transaction multiples
Analyze the drivers behind multiple spreads across the peer set
Defend their peer selection and valuation assumptions in a team setting
Adjust their model and conclusions in response to new market data
Craft a concise summary of their valuation findings
Negotiate and debate valuation points with other teams acting as clients or reviewers
Understand the role and construction of trading comparables in real-world finance.
Build a robust peer group based on industry, size, growth, and profitability.
Extract, adjust, and analyze key income statement and balance sheet items.
Calculate and interpret major equity and enterprise value multiples.
Develop a credible valuation range and articulate the key value drivers.
Critically assess the strengths and limitations of the comparables approach.
Present valuation findings in a clear, professional, and persuasive manner.
Work effectively under time constraints mirroring professional deadlines.
Collaborate within a team to reconcile different analytical perspectives.
1. Receive the Mandate Teams are introduced to the target company and the valuation context.
** 2. Conduct Peer Analysis** Teams research and select a peer group from a universe of potential companies, justifying their choices.
3. Build the Model Participants gather financial data, perform necessary adjustments, and calculate trading multiples in a structured spreadsheet environment.
4. Analyze and Synthesize Teams analyze the output, identify outliers, determine a valuation range, and prepare their narrative.
5. Present and Defend Teams present their valuation summary and key assumptions, often to other teams or a facilitator acting as a senior banker or client.
6. Review and Adapt Based on feedback and new information, teams may refine their model and conclusions in subsequent rounds.
Who is the Trading Comparables Simulation designed for? This simulation is ideal for students and professionals pursuing careers in investment banking, equity research, corporate finance, and private equity who need to master practical valuation skills.
What prior knowledge is needed for the comps simulation? A basic understanding of financial statements and corporate finance is helpful, but the simulation includes instructional content for all levels, making it accessible to beginners.
How long does the Trading Comparables Simulation take to complete? The core simulation runs in 2-3 hours, but it can be modularly extended for deeper analysis or integrated into a longer valuation or investment banking course.
Is this a team-based or individual valuation exercise? It is designed for teams, mirroring the collaborative nature of real-world financial analysis, but can also be configured for individual participation.
What financial multiples does the simulation cover? Participants work with all major multiples, including Price-to-Earnings (P/E), Enterprise Value-to-EBITDA (EV/EBITDA), and Enterprise Value-to-Revenue (EV/Sales).
Do you use real company data in the simulation? Yes, participants work with simulated financial data modeled on real-market dynamics and company profiles to ensure realism without licensing issues.
Can the simulation focus be customized for our course? Absolutely. The industry focus, complexity of financial adjustments, and specific valuation deliverables can be tailored to match your program's objectives.
What roles does this simulation prepare participants for? A8: It provides foundational training for roles such as Investment Banking Analyst, Equity Research Associate, Corporate Development Analyst, and Private Equity Associate.
Accuracy and justification of peer group selection
Correctness of financial data extraction and normalization
Accuracy of multiple calculations and derivation of the valuation range
Quality of analytical insights identifying value drivers and outliers
Clarity, structure, and persuasiveness of the final valuation summary
Team collaboration and effective division of analytical tasks
Join this 20-minute webinar, followed by a Q&A session, to immerse yourself in the simulation.
or
Book a 15-minute Zoom demo with one of our experts to explore how the simulation can benefit you.
