Morgan Stanley Deck
Two companies both trade at 15x P/E. The interviewer asks: which is cheaper, and what do you look at?
Model answer
Same multiple does not mean same value — interrogate what the multiple is capitalizing. Check: (1) growth — if A grows EPS at 15% and B at 5%, A is far cheaper growth-adjusted (PEG of 1.0 versus…
The full, human-reviewed answer is in the bank.
Sign up free and Daily 10 serves you 10 questions a day from all 1,500+ — or go Pro for unlimited reps.
More from Morgan Stanley Deck
- Tell me the Morgan Stanley origin story — when was the firm founded and why?
- What does 'first-class business in a first-class way' mean, and why would you mention it in a Morgan Stanley interview?
- What was the Dean Witter merger and what did it mean strategically for Morgan Stanley?
- Walk me through Morgan Stanley's 2008 crisis experience and what the firm did to survive.
- What was the Smith Barney deal and why is it called the defining move of the modern Morgan Stanley?
- How do the E*TRADE and Eaton Vance acquisitions fit into Morgan Stanley's strategy?