Q1: Do you know how to calculate EV/free cash flow/PE? Q2: Could you recommend a stock to me and tell me the reason why you recommend? Q3: Do you know some company’s allocation strategies?
Equity Research Analyst Interview Questions
Equity Research Analyst Interview Questions
Equity research analysts offer information and analysis to clients to help them make decisions about investments. In an equity research analyst interview, employers might ask specialized questions about stocks to ensure you can predict trends and analyze data to offer reliable recommendations.
Top Equity Research Analyst Interview Questions & How To Answer
Question 1
Question #1: What is the difference between enterprise value and equity value?
How to answer
How to answer: This question tests your understanding of a basic investment concept. Explain that enterprise value captures a stock's current value to shareholders, while equity value is the market value and net debt. An ideal answer might also explain how these two values are found and how they could help you and your clients make decisions.
Question 2
Question #2: Describe an equity research report.
How to answer
How to answer: Equity research reports are a commonly used tool. Aim to show the interviewer that you are skilled in creating these reports. Explain that this is a report delivered to a client where you recommend that they buy, hold, or sell a stock and justify each recommendation. Detail all of the information included in the report, including the industry overview, company financials and ratio, valuations and projections, management overview, and finally, the recommendation.
Question 3
Question #3: Pitch me a stock.
How to answer
How to answer: With your answer, showcase your sales skills. Speak to the interviewer the way you would speak to a client. Choose a company, and reference the information you would include on an equity research report. Prove that you stay updated on the latest news in stocks.
2,708 equity research analyst interview questions shared by candidates
application of big data
What can you bring to the role
What is EV and how can it be calculated from equity?
How much would Starbucks near you make every day? What would happen to the stock price, if the EPS of the company increases?
What method will you use to determine the value of a biotech company?
Buy or sell recommendation case study
What is your outlook on Japan's capital markets in the medium term?
How does your current experience translate to the job your applying for?
First round was fit questions such as background, why BCG, why private equity, asked my about relevant experience in the past such as gathering data and analyzing it. Second round was a 45 min M&A case with hiring manager and we jumped right into the case before anything. Case was about a PE group client looking to enter the pet food suppler industry and interviewer asked what my thoughts were on it. Talked about the market size, vendors, ratios on how much each vendor supplied premium pet food and then finished the case by talking about trends for the market and if I thought the client should enter the market.
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