Does the M&I stock pitch template work for any industry?
You might think: “Well, maybe for the standard ones… healthcare, technology, consumer/retail… but for really different industries, you need something different.”
The most different industry is easily financial institutions (FIG), and commercial banks and insurance firms more specifically.
Accounting is different, valuation is different, and you have to learn whole new methodologies.
But the same stock-pitch structure still works.
To prove it, I’m sharing with you here a SHORT recommendation for Shawbrook [LSE:SHAW], a U.K.-based “challenger bank.”
I’m also sharing a complex 3-statement operating model and valuation for this same bank, with support for multiple scenarios.
This model and stock pitch are part of our Bank & Financial Institution Modeling course, and are fairly recent additions (added in April this year).
First created about a year ago (September 2015), this stock pitch proved to be 100% correct.
If you had taken our advice and bet against the company at the time of this analysis, you would have earned 25%:
And even before Brexit, you would have earned ~10% on this one.
Here’s why it worked, and how you can apply this methodology to commercial banks: