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 specialised questions about stocks to ensure that you can predict trends and analyse data to offer reliable recommendations.
Top Equity Research Analyst Interview Questions & How To Answer
Here are three top equity research analyst questions and tips on how to answer them:
Question No. 1: What is the difference between enterprise value and equity value?
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 whereas 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 No. 2: Describe an equity research report.
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 No. 3: Pitch me a stock.
How to answer: With your answer, showcase your sales skills. Speak to the interviewer just as 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 up to date with the latest news in stocks.
Accounting treatment of impairment and goodwill
What was the standard deviation of net working capital over the past five years for LMT according to your model? (I had prepared a DCF of LMT in anticipation of their upcoming earnings which was the main topic of our conversation)
Can you go through a DCF model for me
Why do you want to work at barclays
Is there any stock that you particularly like?
Q: Are you good at utilizing computers for analysis? Q: Why are you looking for a temporary position other than a full-time job?
What is MS, what do we do?
What is role of equity research within investment bank
