Investment Banking
5 comparable companies questions of the kind asked in investment banking interviews. Each carries a model answer, the concepts a complete response must hit, and graded feedback on your own attempt.
Standard question once you've named the three methodologies.
Compare comparable companies analysis and precedent transactions. Which produces higher values and why? How do you select the comparable set in each?
The most common analyst deliverable. And a routine modelling test in research interviews.
Build a trading comparables analysis for four peers and apply it to a target. For each peer: calculate equity value from shares and price, bridge to enterprise value with net debt, and compute EV/EBITDA. Take the median…
The grunt work behind every comps page, and interviewers check you know why it exists.
You're building a comps set. One company has a June fiscal year end, another December. How do you handle it, and how do you calculate LTM EBITDA?
Sector-specific multiple knowledge is what distinguishes prepared candidates.
Which multiple would you use to value: (a) a software company, (b) an airline, (c) a bank, (d) a REIT, (e) an early-stage biotech? Justify each.
A reasoning question with no single right answer. The interviewer wants your framework.
Two companies in the same industry have identical revenue, EBITDA and growth. One trades at 12x EV/EBITDA, the other at 7x. Give me the possible explanations.
Write your answer, get it graded on technical accuracy, completeness and communication, and see exactly which mechanic you missed.
Firm names indicate where a question type is commonly reported in interviews. They are not sourced from, endorsed by, or affiliated with the firms named.