How to Pitch a Stock in an IB Interview (With Examples)

'Pitch me a stock' is one of the most common interview questions and one of the hardest to prepare for. It tests whether you can think like an investor, communicate concisely, and defend a position under pressure. Here's how to do it well.

The Framework

Every stock pitch follows the same structure. Keep it to 2–3 minutes:

1. Company Overview (15 seconds): What the company does, what sector, rough size. One sentence.

2. Investment Thesis (60–90 seconds): 2–3 specific catalysts that will drive the stock price. This is the core of your pitch. What does the market not fully appreciate? Why is this stock mispriced?

3. Valuation Support (30 seconds): A simple valuation to show the stock is cheap (or fairly priced relative to growth). Trading at X times EBITDA vs peers at Y times, or a rough DCF suggesting Z% upside.

4. Risks and Mitigants (30 seconds): 2 key risks and why you're comfortable with them. This shows critical thinking.

Choosing the Right Stock

Avoid mega-caps and FAANG: Everyone pitches Apple and Google. It's impossible to say something original about them. Interviewers have heard it all before.

Pick something you know: A company in a sector you understand, a product you use, or a business you've researched. Authenticity shows.

Ideally sector-relevant: If you're interviewing for TMT, pitch a tech stock. Healthcare group? Pitch a pharma or med-tech company. This shows sector interest.

Mid-cap is ideal: Large enough to have analyst coverage and financial data, small enough that you're unlikely to duplicate another candidate's pitch.

Building Your Thesis

The thesis needs to be specific and differentiated. 'Great company with strong growth' is not a thesis – the market already knows that and it's priced in. You need catalysts that the market is underappreciating:

New product launch: A product entering a large addressable market that's not yet reflected in estimates.

Margin expansion opportunity: Cost restructuring, economies of scale, or pricing power that will drive margins higher than consensus expects.

Sector tailwind: A macro or regulatory trend that disproportionately benefits this company.

Underappreciated asset: A business segment, IP portfolio, or real estate that the market is valuing at zero or below fair value.

Handling Pushback

Good interviewers will challenge your pitch. This is a feature, not a bug – they want to see how you think under pressure.

If they challenge a catalyst: Acknowledge the risk, explain why you've weighted it differently, and reference data.

If they challenge valuation: Be flexible. 'You're right, the peer multiple has compressed recently. Even at a 15% discount to the peer median, I see 10% upside.'

If they ask 'what's the bear case?': Have it ready. Naming the bear case and explaining why you still like the stock is the strongest possible position.