Basic knowledge of Excel and financial statements is recommended. The simulation includes built-in guidance for valuation techniques.
Equity Valuation Simulation
Students step into the role of equity analysts, valuing listed companies using real financial data, forecasting performance, and defending investment theses in our Equity Valuation Simulation.
Equity Valuation Simulation Overview
The Equity Valuation Simulation gives students a realistic, hands-on experience in determining what a company is truly worth.
Developed by valuation experts and equity research professionals, this simulation guides students through the process of analyzing business models, interpreting financial statements, and applying valuation techniques like discounted cash flow and multiples-based analysis.
Rather than just plugging numbers into models, students must make assumptions, build forecasts, and justify them under scrutiny. The simulation creates a fast-paced yet thoughtful environment where analytical precision and sound reasoning are key.
Equity Valuation Simulation Concepts
Students will apply and deepen their understanding of key valuation principles, including:
- Valuation Methodologies: DCF, relative valuation (P/E, EV/EBITDA), dividend discount models
- Forecasting: Revenue, margins, capex, working capital, and terminal value
- Cost of Capital: WACC calculation, beta, risk-free rate, and market premium
- Capital Structure Analysis: Debt vs equity impact on valuation
- Scenario Analysis and Sensitivity Testing
- Investment Thesis Construction: Qualitative and quantitative alignment
- Market Comparables and Peer Benchmarking
Gameflow
What Students Do
In this single- or multiplayer simulation, students act as equity analysts preparing a valuation report for a company. They will:
- Analyze historical financials and competitive positioning
- Build forward-looking models and justify key assumptions
- Choose appropriate valuation methods based on industry and data
- Run scenario and sensitivity analyses to stress-test valuations
- Present a final valuation range and investment recommendation
- Defend their methodology and conclusions in front of peers or instructors
What Students Learn
The simulation cultivates the mindset and toolkit of a professional equity analyst. Students learn how to:
- Think critically about business assumptions and translate them into forecasts
- Select valuation methods suited to specific industries or cases
- Apply and interpret DCF and multiples-based models
- Balance precision with practicality in financial modelling
- Communicate a valuation case clearly and persuasively
- Recognize that valuation is both art and science—and justify their judgments
Why This Equity Valuation Simulation Works
Valuation often appears formulaic in class, but this simulation reveals its strategic and judgment-driven nature.
Rather than memorizing inputs and outputs, students must grapple with real uncertainties: Is this forecast realistic? Which peer companies are truly comparable? What does the market already price in?
The simulation builds confidence through repetition, feedback, and presentation - giving students not just knowledge, but conviction.
It’s ideal for advanced undergraduates, MBAs, or finance-focused professionals preparing for roles in equity research, investment banking, or portfolio management.