Finexsi is an independent financial advisory and consulting firm. As a leading valuation firm, Finexsi is involved in business valuations, particularly in public offers, company acquisitions, and litigation-related damage assessments.
With more than 20 years of experience in financial valuation and considering its market leader position in fairness opinion, Finexsi has developed its own market risk premium calculation model.
This model allows Finexsi to autonomously determine a market risk premium, which the firm now uses in its valuation assignments as well as in litigation support.
Finexsi has chosen a “prospective” approach, which explicitly takes into account the financial situation of companies and expected economic prospects, as reflected in market observations.
This model has undergone an independent academic review, conducted by Professor François Longin[1], a lecturer at ESSEC Business School, who validates and supports Finexsi’s approach:
“Finexsi has successfully developed an in-house model to autonomously generate a market risk premium from external data based on the consensus of future cash flows of companies.
The Finexsi model meets academic standards and is consistent with market data.
It is a robust model, incorporating consistency checks that enhance its reliability.
The model is therefore relevant and suitable for use in determining the market values of assets and companies.”[2]
[1] Graduate from École Nationale des Ponts et Chaussées and Doctorate in finance , he also holds a postgraduate diploma (DEA de Probabilité) from Paris VI University, and is an agrégé de mathématiques.
[2] Free translation of the Conclusion of Professor François Longin’s report, dated September 12, 2024.
