Equity Research interview preparation

Questions

100

Traced to a firm

72

Firms

45

Updated

September 2026

Asked at

All firmsMorningstar12Man Group6Balyasny Asset Management5BLBlackRock5FTFranklin Templeton5MSCI5Jefferies4CSCredit Suisse3Fidelity Investments3Moody's3Perella Weinberg Partners3Point723S&P Global3The Vanguard Group3WMWellington Management3Advent International2Apollo Global Management2Bank of America2Carlyle Group2DED.E. Shaw2Houlihan Lokey2HSBC2Piper Sandler2Sequoia Capital2SSState Street2Viking Global Investors2WBWilliam Blair2ACAQR Capital Management1BGBaupost Group1BMBNY Mellon1Centerview Partners1Coatue Management1Goldman Sachs1GSGuggenheim Securities1HWHarris Williams1Insight Partners1Invesco1Mizuho1Moelis & Company1MSMorgan Stanley1PIMCO1SCSchroders1Scotiabank1T. Rowe Price1TSTruist Securities1

Topic

All topicsResearch process9Stock pitch6Company analysis8Investment philosophy5Valuation14Modelling2Portfolio and risk8Macro8Sector knowledge2Accounting8Career and fit12Industry knowledge6Quantitative research1Sector: technology3Sector: consumer1Sector: healthcare1Sector: energy1Sector: financials2Sector: industrials1Case and estimation2

Level

AnyCoreIntermediateHard

Type

AnyTechnicalCaseFitBrainteaserMarket view

1. 004Pitch me a stock.Stock pitchIntermediateevery roundMan GroupEquity Hedge · London · 2016MSMorgan StanleySales and Trading · Tokyo · 2025Balyasny Asset ManagementGeneralist · New York · 2020

   Say this

   Recommendation and target first, business in two sentences, then the variant view, the catalyst, the risk, and what would make you wrong. Ninety seconds, and the variant view is the only part that counts.

   Then walk it

   1. Open with the trade: 'Long X at 40, target 55, about 35 percent upside over 12 to 18 months.' Never build up to the recommendation.
   2. Two sentences on what the business actually does, so the interviewer knows you are not pitching a ticker.
   3. The variant view: what do you believe that consensus does not, and why are you right? 'The street models 8 percent growth; I think it is 14 because the new contract has not been added to numbers yet.' Quantify the gap.
   4. The catalyst and timing: what makes the market agree with you, and roughly when. A view with no catalyst is a value trap.
   5. Valuation: what multiple you are paying, what the peers trade at, what the reverse DCF implies.
   6. Risks and the falsifier: the two things that break the thesis, and the specific data point you would watch. Ending on what would make you wrong is what makes an analyst sound honest rather than promotional.

   Where candidates lose it

   Pitching a household mega-cap with a thesis lifted from the financial press. If the reason is in the newspaper, it is in the price. Pick something slightly off the beaten path and know its numbers cold.

   Expect next

   • Are you sure that thesis can be backed up? What if their costs do not fall?
   • What is the bear case?
   • How would you hedge it?

   Reported by candidates at Man Group (Equity Hedge, London, 2016); Morgan Stanley (Sales and Trading, Tokyo, 2025); Balyasny Asset Management (Generalist, New York, 2020). Source: Wall Street Oasis.

2. 006What areas of competitive advantage does this company have? Does it have barriers to entry, and can it sustain its revenue growth?Company analysisIntermediatecase studyMorningstarEquity Research · Chicago · 2023

   Say this

   Test the moat against the numbers rather than asserting it. A real competitive advantage shows up as returns on invested capital above the cost of capital, sustained for years, with stable or rising market share.

   Then walk it

   1. Name the source, and be specific. Intangibles like brand and patents, switching costs, network effects, cost advantage from scale or process, and efficient scale in a market too small for two players. Those five cover almost everything.
   2. Then prove it with evidence: ROIC consistently above WACC, gross margin stable through a downturn, pricing taken above inflation without volume loss, and customer retention.
   3. Then test durability directly. Ask what a well-funded competitor would have to do to take a customer, and how long it would take. If the answer is 'offer a lower price', there is no moat.
   4. On sustaining growth, separate the sources: price, volume, mix, new products, new geographies, and acquisitions. Growth from price and mix is high quality; growth from acquisitions is bought and should be valued differently.
   5. Then the honest test for a research note: is the moat widening, stable or narrowing? Morningstar's own framework is built on exactly that trend judgement, and it drives the fair value estimate far more than this year's earnings.

   Where candidates lose it

   Listing Porter's five forces as a memorised frame with no company-specific evidence. The grader wants the link from the qualitative claim to a number in the financials. No ROIC, no moat.

   Expect next

   • Is the moat widening or narrowing?
   • What return on capital does it earn against its cost of capital?
   • Would you rather own a low quality business at a great price or a high quality one at an okay price?

   Reported by candidates at Morningstar (Equity Research, Chicago, 2023). Source: Wall Street Oasis.

3. 013How does a falling oil price affect oil-exporting nations?MacroIntermediatetechnicalSSState StreetEquity Research · Boston · 2020

   Say this

   It hits the fiscal balance, the current account and the currency simultaneously. Export revenue falls, the budget goes into deficit because most producers need a high fiscal breakeven price, and the currency comes under pressure.

   Then walk it

   1. Export revenue is the first channel. For a country where hydrocarbons are most of exports, a halving of the price halves the external income.
   2. The fiscal channel is the sharper one. Most producers have a fiscal breakeven oil price, often far above the marginal cost of production, because the budget funds subsidies and public employment. Below it, the deficit widens fast.
   3. Currency pressure follows. A floating currency depreciates, which cushions the local-currency revenue but imports inflation. A pegged currency instead burns reserves to defend the peg, which is why pegged producers face the harder adjustment.
   4. Second-round effects: sovereign wealth funds sell assets to fund the deficit, capital expenditure on projects is cut, and the non-oil economy contracts because it is largely funded by oil receipts.
   5. The differentiator between countries is buffers. A producer with a large sovereign fund and low breakeven can absorb years of weak prices. One with high breakeven and thin reserves faces a currency or a debt crisis. That comparison is the actual analysis.

   Where candidates lose it

   Stopping at 'they earn less money'. The examinable content is the fiscal breakeven concept and the difference between a floating and a pegged currency response. Name both and the answer is complete.

   Expect next

   • Which producers are most vulnerable?
   • What happens to their sovereign wealth funds?
   • How would you position for it in equities?

   Reported by candidates at State Street (Equity Research, Boston, 2020). Source: Wall Street Oasis.

4. 015Compare the sectors you have covered and tell me which has the best prospects.Sector knowledgeIntermediatetechnicalWMWellington ManagementGeneralist · Hong Kong · 2022

   Say this

   Compare them on a consistent frame rather than describing each in turn: structural growth, industry structure and pricing power, capital intensity, and where valuation sits relative to history. Then pick one and commit.

   Then walk it

   1. Set the frame first so the comparison is disciplined. Four axes: demand growth, competitive structure, returns on capital, and starting valuation.
   2. Score each sector briefly on each axis. This takes thirty seconds and it immediately sounds like a portfolio conversation rather than a summary.
   3. Then pick, and make the reason relative rather than absolute. 'Both are good businesses, but one is priced for the improvement and the other is not' is the analytically interesting answer.
   4. Distinguish structural from cyclical prospects. A sector with mediocre long-term economics can be the better investment today if it is at the bottom of its cycle and the market is extrapolating the trough.
   5. Close with the risk to your choice, and what would make you switch. Naming the condition under which you would change your mind is what separates a view from a preference.

   Where candidates lose it

   Describing each sector sequentially without comparing on a common axis. The question is a ranking exercise. Set the criteria first, then apply them, then choose.

   Expect next

   • What is priced into each?
   • Which would you avoid entirely?
   • How would that change in a recession?

   Reported by candidates at Wellington Management (Generalist, Hong Kong, 2022). Source: Wall Street Oasis.

5. 039How would you analyse a retailer?Sector: consumerIntermediatetechnicalBank of AmericaConsumer and Retail · London · 2026

   Say this

   Same-store sales and gross margin drive everything. Decompose comps into traffic, basket size and price, then check whether margin is being bought with discounting, and watch inventory as the early warning.

   Then walk it

   1. Revenue splits into comparable store sales and square footage growth. Comps are the quality signal; new stores can mask a deteriorating base.
   2. Decompose comps further into transactions and average ticket, and ticket into units and price. A comp driven by price in an inflationary period is weaker than one driven by traffic.
   3. Gross margin is where the truth sits. Rising sales with falling gross margin means discounting, which is buying revenue rather than earning it.
   4. Inventory is the leading indicator. If inventory grows faster than sales for two quarters, markdowns are coming and the margin will follow. This is the single most reliable early signal in retail.
   5. Then the cost structure: occupancy and labour are largely fixed, so retail has high operating leverage. A two-point comp swing moves EBIT far more than it moves revenue.
   6. Then the structural questions: online mix and its margin, private label penetration, and whether the store estate is an asset or a liability. And check the lease liabilities, because a retailer's real leverage is usually in the leases.

   Where candidates lose it

   Focusing on revenue growth without decomposing comps, and ignoring inventory. Inventory-to-sales is the metric that separates people who have covered retail from people who have read about it.

   Expect next

   • What does rising inventory tell you?
   • How do you treat lease liabilities?
   • How would you value it against an online-only peer?

   Reported by candidates at Bank of America (Consumer and Retail, London, 2026). Source: Wall Street Oasis.

6. 064How would you compare two companies in the same sector trading at very different multiples?ValuationIntermediatetechnicalCSCredit SuisseGeneralist · Sydney · 2020

   Say this

   Assume the market is right until proven otherwise, then find the justification. Multiple gaps almost always reflect differences in growth, returns on capital, or risk. The investment question is whether the gap is larger than those differences warrant.

   Then walk it

   1. First decompose the gap. Is it growth, margin, returns on capital, capital intensity, cyclicality, balance sheet, or governance? Usually two or three of these explain most of it.
   2. Check the denominators are comparable. Different accounting policies, different fiscal years, different definitions of adjusted earnings, and different treatment of leases or capitalised costs all create fake gaps.
   3. Then quantify. If one grows 5 points faster with 10 points higher return on capital, how much premium does that justify? A regression of sector multiples against growth and ROIC gives a defensible expected multiple for each.
   4. The residual, the difference between the actual multiple and the regression-implied one, is the potential mispricing. That is where the idea lives.
   5. Then look for the non-fundamental explanations: index membership, liquidity, free float, ownership structure, or a governance discount for a controlled company. These are real and persistent.
   6. The conclusion should be specific: the cheaper one is cheap for reasons X and Y, which I think are permanent, or which I think the market is over-extrapolating. Either is a view.

   Where candidates lose it

   Assuming the cheaper one is the better investment. The default position should be that the market has a reason, and your job is to find it and then decide whether it is overstated.

   Expect next

   • What non-fundamental reasons could explain it?
   • Would you pair-trade them?
   • What would close the gap?

   Reported by candidates at Credit Suisse (Generalist, Sydney, 2020). Source: Wall Street Oasis.

7. 070How would you build a portfolio for clients with different needs and requirements?Portfolio and riskIntermediatetechnicalThe Vanguard GroupInvestment Research · Malvern · 2024ScotiabankSales and Trading · Toronto · 2025

   Say this

   Start from the liability, not the assets. What is the money for, when is it needed, and what loss can the client tolerate without abandoning the plan? Then build the allocation to match, and only then pick instruments.

   Then walk it

   1. Establish the objective and the horizon. A retirement pot 30 years out and a house deposit in two years require opposite portfolios regardless of the client's stated risk appetite.
   2. Separate risk capacity from risk tolerance. Capacity is what their circumstances can absorb; tolerance is what they can emotionally sustain. Build to the lower of the two, because a portfolio abandoned in a drawdown fails whatever its expected return.
   3. Set the strategic asset allocation across equities, fixed income, and any alternatives or real assets. This is the decision that matters most.
   4. Then the constraints: tax status and the right account wrappers, liquidity needs, existing concentrated positions, currency exposure, and any ethical restrictions.
   5. Then instrument selection, favouring low-cost broad exposure as the core, with active or satellite positions only where there is a reason to expect an edge.
   6. Then the governance: a rebalancing rule, a review schedule, and a written plan for what happens in a drawdown. Agreeing the behaviour in advance is the single highest-value thing an adviser does.

   Where candidates lose it

   Starting from products and risk questionnaires. The professional sequence is objective, then capacity and tolerance, then allocation, then instruments. Also failing to distinguish capacity from tolerance, which is the distinction that actually protects clients.

   Expect next

   • How would that differ for a 25-year-old and a 65-year-old?
   • How do you handle a client with a concentrated stock position?
   • What do you do when a client wants to sell in a crash?

   Reported by candidates at The Vanguard Group (Investment Research, Malvern, 2024); Scotiabank (Sales and Trading, Toronto, 2025). Source: Wall Street Oasis.

8. 074How would you analyse an IT services company?Sector: technologyIntermediatetechnicalCSCredit SuisseInvestment Banking · Mumbai · 2021

   Say this

   It is a people business, so the drivers are headcount, utilisation, billing rate and attrition. Revenue is headcount times utilisation times realisation, and margin is driven by the pyramid and the offshore mix.

   Then walk it

   1. Revenue build: billable headcount times utilisation times realised rate per hour. Constant-currency growth is the number the market watches, because reported growth is distorted by the dollar-rupee rate.
   2. Margin drivers: the employee pyramid, meaning the ratio of juniors to seniors, the onsite-offshore mix, utilisation, and wage inflation. A steeper pyramid and more offshore work both lift margin.
   3. Attrition is the key operational metric. High attrition means replacement hiring at higher wages, backfilling with less experienced staff, and delivery risk on fixed-price contracts.
   4. Demand indicators: total contract value of deals signed, the book-to-bill ratio, and the pipeline. Deal wins lead revenue by several quarters, so this is where the variant view usually sits.
   5. Client concentration and vertical mix matter: exposure to banking and financial services means the cycle in client budgets flows straight through.
   6. The structural question now is what AI does to the model. If delivery becomes less headcount-linked, the revenue build breaks and the pricing model shifts from effort to outcome. That is the live debate and having a view on it is what makes the answer current.

   Where candidates lose it

   Modelling it as a generic services business with a growth rate. The sector has a specific vocabulary, utilisation, pyramid, realisation, attrition, constant currency, and an interviewer covering it will expect all of them.

   Expect next

   • What does AI do to the headcount-linked revenue model?
   • Why does constant currency matter?
   • How does the rupee affect margins?

   Reported by candidates at Credit Suisse (Investment Banking, Mumbai, 2021). Source: Wall Street Oasis.

9. 076How would you analyse an industrial or capital goods company?Sector: industrialsIntermediatetechnicalWBWilliam BlairInvestment Banking · Atlanta · 2026

   Say this

   Order book first. Orders lead revenue by quarters or years, so the book-to-bill ratio and backlog are the leading indicators. Then margin through the cycle, then the aftermarket.

   Then walk it

   1. Orders and backlog: book-to-bill above one means the backlog is growing and revenue will follow. This is the single most useful disclosure in the sector and the source of most variant views.
   2. Backlog quality matters as much as size: execution timeline, cancellation risk, and whether contracts are fixed price or cost plus. Fixed-price contracts in an inflationary period are where margins get destroyed.
   3. Margin: high operating leverage from a fixed manufacturing base, so incremental volume drops through heavily. Model incremental margins rather than absolute margins.
   4. The aftermarket is the quality of the business. Spare parts and service carry much higher margins than original equipment and are far less cyclical, so the installed base is an annuity. Companies with a high service mix deserve a materially higher multiple.
   5. Working capital and cash conversion: long production cycles tie up cash, and advance payments from customers can fund it. Watch the gap between reported profit and cash.
   6. And position it in the cycle: capital goods demand follows capacity utilisation and credit conditions in the customer industries, so the analysis is really about the customers' capital expenditure plans.

   Where candidates lose it

   Ignoring the aftermarket. The recurring service revenue is usually the majority of the profit and the entire reason some industrials trade at premium multiples. Missing it means missing the investment case.

   Expect next

   • What is book-to-bill telling you?
   • Why does the aftermarket deserve a higher multiple?
   • What is an incremental margin?

   Reported by candidates at William Blair (Investment Banking, Atlanta, 2026). Source: Wall Street Oasis.

10. 077A company's revenue is growing but its cash flow is not. What is happening?AccountingIntermediatetechnicalCredit research

    Say this

    Almost always working capital or revenue recognition. Either the company is selling to customers who are not paying, building inventory it has not sold, or recognising revenue ahead of the cash.

    Then walk it

    1. Check receivable days first. Rising days sales outstanding means sales are being made on easier terms, or to weaker customers, or channel-stuffed into distributors.
    2. Then inventory days. Building inventory ahead of demand consumes cash and usually precedes a markdown.
    3. Then payables. If days payable outstanding is falling, suppliers have tightened terms, which is often a sign they are worried about the company.
    4. Then revenue recognition policy. Percentage-of-completion accounting, long-term contracts and bill-and-hold arrangements all allow revenue well before cash.
    5. Then capitalisation: if development costs or contract acquisition costs are being capitalised, profit is protected while cash is spent.
    6. Growth itself explains some of it legitimately: a fast-growing business funds working capital, so cash lags revenue by construction. The diagnostic question is whether the working capital intensity, measured as a percentage of revenue, is stable or deteriorating. Stable is growth; deteriorating is a problem.

    Where candidates lose it

    Concluding fraud immediately. Fast growth legitimately consumes cash. The discriminating test is whether working capital as a percentage of sales is stable or worsening, and saying that distinguishes analysis from alarm.

    Expect next

    • How would you tell growth from deterioration?
    • What is channel stuffing and how would you spot it?
    • What would you ask management?

Firm tags come from public, anonymous candidate reports on Wall Street Oasis: strong signal, not sworn testimony. Firms are named as the places a question was reported, not as partners of Fin Maverick. Answers are written for this page to show how to think out loud; they are not scripts to recite.