ValuationSim is a business simulation designed to be used in corporate valuation courses. It simulates a small private equity firm that acquires companies based on their valuations using assigned budgets in consecutive rounds. Students in teams of two or three individuals perform DCF based valuations using data and assumptions provided at the beginning of each round and then decide what acquisitions to make. The aim in each round is to have the lowest valuation errors and to generate the highest return from the acquired firms. 

The data and the assumptions are few and simple in the first rounds. As the simulation progresses, they increase in quantity and complexity. This process allows the participants to gradually improve their valuation skills using basic techniques at the beginning and more refined techniques at the end.

There are instructions and a tutorial for each round. Once students enter their valuations for each firm and their decisions on which firms to acquire, ASDSIM processes the round and publishes a report showing valuation errors and returns for each team. A class report allows students to compare their performance to other teams generating a competitive environment that results in higher motivation to succeed while learning valuation techniques. 

Students are required to use Excel in their valuation and to upload their file to the website showing their work. These files are downloadable by the instructor, but not required to evaluate team performance.  

Team valuations are compared to the valuations performed by the simulator using the DCF method. Students are required to use FCFE, FCFF, and the comparables method of valuation in a sequential mode. By applying valuation models and techniques for many firms in multiple rounds, learning is reinforced. The simulation also improves students' skills in financial modeling using Excel. 

A score is assigned to each team after each round based on the accuracy of their valuations and on the annual return of the acquired companies after one year, including the spread between the acquisition price and its intrinsic valuation. General feedback is given after each simulation round. At the end of the simulation a final score is assigned. The simulation is administered on