⏱ Reading Time: 2 Minutes 28 Seconds

Happy Monday, future bankers!

Hope everyone is doing well! Today we’re covering EV/Revenue multiples, a time you had a conflict, and AT&T’s massive data leak.

🚀 Let’s get into it.

🔢 Technical Question

In what industry are EV/Revenue multiples most common? Why?

The EV/Revenue multiple, also known as the Enterprise Value-to-Revenue multiple, is a valuation metric that is used across various industries. However, it is particularly common in industries where companies have significant revenues but may not yet be profitable, such as technology and biotech sectors.

The reason for this is twofold:

1. Revenue Visibility: In these industries, companies often have predictable and recurring revenue streams. This revenue visibility makes the EV/Revenue multiple a reliable indicator of a company’s value.

2. Growth Expectation: High-growth industries like technology and biotech often reinvest their earnings into growth and innovation, which can lead to negative or low net income in the short term. Therefore, using a multiple based on revenue, rather than earnings, can provide a more accurate representation of the company’s potential value.

It’s important to note that while the EV/Revenue multiple is useful in these contexts, no single valuation metric should be used in isolation. A comprehensive financial analysis should consider a variety of factors and metrics.

🗣 Behavioral Question

Give me an example of a time you had a conflict with a team member, peer, or friend. How did you handle it?

Here are some best practices for responding to this question:

1. Identify a Real Conflict: Choose a real-life situation where you had a disagreement or conflict with a team member or peer. The conflict should be significant enough to demonstrate your conflict resolution skills.

2. Describe the Situation: Clearly explain the situation, the people involved, and why the conflict occurred. Be concise and stick to the facts.

3. Explain Your Actions: Detail the steps you took to resolve the conflict. This could include open communication, empathy, negotiation, or seeking help from a supervisor.

4. Highlight the Resolution: Discuss the outcome of the situation and how the conflict was resolved. If possible, mention any positive results that came out of the situation.

5. Reflect on the Experience: Share what you learned from the experience and how it has influenced your approach to conflict resolution in the future.

In the end, the interviewer is interested in your problem-solving skills and ability to handle conflicts professionally. Avoid blaming others and focus on your role in resolving the conflict.

🗞 Industry News

😳 AT&T’s Data Leak to the Dark Web

AT&T recently experienced a significant data leak, with personal data from approximately 73 million current and former customers finding its way onto the dark web. This unfortunate event led to the company resetting 7.6 million account passcodes. The leaked data, which includes sensitive information such as Social Security numbers, is believed to be from 2019 or earlier. AT&T is currently investigating the source of the data, and it remains unclear whether it originated from the company or a vendor.

This incident comes three years after a hacker known as ShinyHunters claimed to have stolen the personal information of about 70 million AT&T customers. AT&T denied being the victim of a data breach at that time, stating that the stolen information did not come from its systems. Despite the recent leak, AT&T maintains that there has been no unauthorized access to its systems and that the incident has not materially affected its operations. The company is proactively communicating with those impacted and will be offering credit monitoring where applicable.

Read more about this story below.

Thanks for tuning in today! Best of luck to everyone working through recruiting right now. If you sign an offer, reply to this email and let us know about it! Like seriously, do it—we’d love to hear about it!