Stock Pitch Worksheet (Page 2 of 4) in pdf

Part A: Story

Description of business model: VistaPrint uses the Internet to provide custom printing and

graphic design solutions to the SOHO (small office/home office) market.

Competitive advantage(s): 1) Compelling customer value proposition due to high quality

products and lower costs; 2) significant competitive barriers to entry; and 3) a highly scalable

business model.

Growth opportunities: VPRT is quickly gaining market share in a highly fragmented U.S. and

European small business print and graphic design market worth ~$19B. Potential growth

opportunities include: 1) new products; 2) international expansion; 3) and an extension into the

consumer market.

Catalyst(s): The introduction of new products and continued strong quarterly performance will

likely increase visibility into VPRT’s growth story.

Note: If you are making a shorter-term investment recommendation, catalysts are especially

important.

Part B: Numbers

Earnings: EPS (earnings per share) is one of the most important determinants of a company’s

share price. Make sure you know your company’s current EPS, past EPS growth rates, and

consensus estimates for future EPS growth. If you can make a case for why you believe a

company will grow earnings faster/slower than consensus expectations, this might be a key

component of your long/short argument. But remember, if everyone expects a company to

grow earnings at a very high/low rate in the future, this is not a source of opportunity because it

will already be priced into the company’s shares.

Revenues: Like earnings, make sure you know how much revenue your company generates, at

what rate revenue has grown in the past, and what expectations are for future revenue growth.

Margins: Margins are calculated by taking a given profit line on the income statement (e.g.

gross income, EBITDA, net income) and dividing it by total revenue. Margins are a useful tool

for comparing competitors because they measure a company’s efficiency. They are also an

indicator of risk: for example, an airline with good margins (relative to their competitors) will

be able to more easily absorb an unexpected rise in fuel costs.

Industry-specific metrics: These are very important indicators of a company’s success relative

to its peers. Expectations of future industry-specific metrics are often a key component of any

long/short argument. These metrics are different for each industry. For example, retail

companies follow same store sales growth, square footage growth, and sales per square foot.

Internet companies look at total page views, unique users, and click-through rates.

FEP, Duke University

Last updated 12/14/11

Stock Pitch Worksheet Page 2