How long is a stock pitch supposed to take in a 30 min interview?

coach01's picture
Rank: Monkey | 53

Hey all,

So I prepared a stock pitch and it's over 3 min...

The format goes:
1) company intro including size, their market, their biggest competitor
2) valuation (PE, PEG and comparing this against their biggest competitor)
3) 3 margins, ROE
4) long term trend, why the stock is undervalued and why it should trade higher, and my target price

Is this too long? As for margins, I'm planning on actually saying what the margins are to be specific.. Or would this be too time consuming?

What is an ideal duration of a stock pitch for a 30 min investment banking interview?

Comments (19)

Aug 10, 2012

When I was interviewing mine was not overly long (~ 1 minute 30 seconds) and it was probably the question I had the most positive feedback on... if you go on that long in my opinion you will let on like you know EVERYTHING about the company, and will warrant more difficult follow-up questions. Stick to the fundamentals of why it is good, and let them ask you about things you are prepared to answer.

Obviously a matter of opinion, but I think 3 min is too long for a banking interview and you will bore your interviewers.

Aug 10, 2012

Go top - down... start with your PT and main catalysts, then break it down into more detail afterwards

Aug 10, 2012

Ive managed to shrink it into 2 minutes... Is this all right? I dunno how you can fit it all in 30sec -1min...

Aug 10, 2012

2 minutes seems okay... did they specifically ask for a 30 seconds to 1 minute pitch?

Aug 11, 2012

Less then 2 minutes. You don't have to explain everything. That comes out In the Q and A. What I care most about is why is this stock undervalued, what are the main catalysts to correct this and what is the time frame in realizing your PO. Problem I see when most candidates try to answer the stock pitch question is they get bogged down in the minutiae and they get stuck on things investors really don't care about.

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Aug 11, 2012

I agree with the above - short and sweet. Focus on why you think the rest of the market has mispriced the stock.

On the job you're almost always going to be told what projections to plug into your model anyways, so the idea of an individual stock valuation/pitch doesn't even translate that well to an analyst's job. It's more of a way to gauge your interest / general fluency with finance.

Aug 11, 2012

I've had a ton of interviews for BB IB SA positions and I've never once been asked to pitch a stock

Aug 11, 2012

I must be insane, because I expected a stock pitch should take about 15-20 minutes, if not the entire 30.

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Aug 11, 2012
BlackHat:

I must be insane, because I expected a stock pitch should take about 15-20 minutes, if not the entire 30.

investment banking interview. More relevant questions will probably include: what's your favorite function in Excel?

Aug 11, 2012
SirTradesaLot:
BlackHat:

I must be insane, because I expected a stock pitch should take about 15-20 minutes, if not the entire 30.

investment banking interview. More relevant questions will probably include: what's your favorite function in Excel?

I think he's being sarcastic.

Aug 12, 2012
SirTradesaLot:
BlackHat:

I must be insane, because I expected a stock pitch should take about 15-20 minutes, if not the entire 30.

investment banking interview. More relevant questions will probably include: what's your favorite function in Excel?

I'm gonna hafta go with OFFSET...though I feel that INDIRECT is really underrated amongst the monkey community.

Aug 11, 2012

Because you work at a HF. OP is probably going for some internship position in AM not buyside sector analyst at a 15 person shop. No need for slide decks or supporting models.

Aug 11, 2012

Response to BlackHat: Our interviews require an interview of about 15-20 minutes. I think it just depends what level of experience the candidate is at and how heavily the firm values research that makes that longer or shorter. (For a hedge fund it will be longer probably than something like an equity research associate position)

Aug 12, 2012

It's conversational... it's not a stop watch timed thing, wtf is wrong with this board

Aug 12, 2012
adapt or die:

It's conversational... it's not a stop watch timed thing.

This.

The HBS guys have MAD SWAGGER. They frequently wear their class jackets to boston bars, strutting and acting like they own the joint. They just ooze success, confidence, swagger, basically attributes of alpha males.

Aug 12, 2012

the most important thing is to tell them the story behind your stock pick within the first minute and a half. then they will start asking you about the valuation and ask you about your view on the sector and how this stock fits into your view on the economy in general. for SA, keep it simple. in a interview for SA its more about demonstrating that you understand how the economy works, the value chain and the business model itself. you shouldnt act like you're a valuation god because they will test you. and trust me you dont want to go there unless youre comfortable with that sort of stuff. do your best not to sound like a smart ass.

Aug 12, 2012

you're doing it all wrong.

Tell a story.

Aug 16, 2012

wait what? ib interview w/ stock pitch?

anyway, if you can't generate interest with a max 1 min stock pitch, no one would be interested. key is to tell a story that generates interest.

and who the hell cares about roe numbers anyway? jcp or shld "investors" that consistent loses money? safe those multiples for the cfa exam.

Aug 16, 2012
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