Pitch me a stock
Answer
Try to find current Revenue multiples and EBITDA multiples. If you can’t find these, find P/E multiples of competitors and benchmark them against their peers.
Make sure to cover the below:
Summary of what the company does
Give a brief overview of their financial profile and recent performance
State why it’s undervalued or more attractive than its peers due to any competitive advantage
Say how there is a long-term trend in the company’s favor
Why this matters to bankers
Bankers have to be strong evaluators of businesses and understand what moves valuation. By asking you to pitch a stock, they’re making sure that you can discuss recent data and competitive advantages.