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. 040How would you analyse a pharmaceutical company?Sector: healthcareHardtechnicalMoelis & CompanyMergers and Acquisitions · Los Angeles · 2022GSGuggenheim SecuritiesHealthcare · London · 2026

   Say this

   Value it asset by asset. The marketed drugs are annuities running to patent expiry, the pipeline is a set of probability-weighted options, and the two are valued completely differently.

   Then walk it

   1. Marketed products: forecast each drug's sales to its loss of exclusivity date, then model the cliff. Generic entry typically removes 70 to 90 percent of small-molecule revenue within a year or two; biologics erode more slowly because biosimilars are harder.
   2. Pipeline: for each candidate, size the patient population, price, penetration and duration, then apply probability of success by phase. Roughly 60 to 70 percent from Phase III, around 30 percent from Phase II, low single digits preclinical.
   3. Sum the parts and add net cash. The output is a range, because a single readout can move the value by a factor.
   4. Then the structural questions: the patent cliff schedule over the next five years, R&D productivity measured as approvals per dollar spent, and whether the company can acquire its way out of a gap.
   5. Pricing and reimbursement risk is the sector's macro. Policy on drug pricing can reset the whole group's multiple independently of any company's execution.
   6. The practical framing for a note: what percentage of current revenue loses exclusivity within five years, and does the pipeline plus reasonable business development replace it? That one question drives most pharma investment cases.

   Where candidates lose it

   Applying a single P/E to the whole company. A pharma is a portfolio of expiring annuities plus options, and blending them into one multiple hides the cliff, which is the entire risk.

   Expect next

   • How do you handle the patent cliff?
   • What probability would you use for a Phase II asset?
   • Which is riskier, biologics or small molecules?

   Reported by candidates at Moelis & Company (Mergers and Acquisitions, Los Angeles, 2022); Guggenheim Securities (Healthcare, London, 2026). Source: Wall Street Oasis.

2. 041How would you analyse an energy or commodity producer?Sector: energyHardtechnicalFTFranklin TempletonOil and Gas · San Mateo · 2024Perella Weinberg PartnersInvestment Banking · Houston · 2025

   Say this

   Position on the cost curve first, then reserves and production, then the balance sheet. The commodity price is the same for everyone, so the only company-specific variables are cost, volume and leverage.

   Then walk it

   1. Cost position is everything. A producer in the bottom quartile of the cost curve survives the trough and buys assets cheaply; a high-cost producer is a leveraged bet on the price.
   2. Reserves and reserve life: how long can they produce at current rates, what is the finding and development cost per barrel, and what is the decline rate on existing wells. Shale declines fast, so maintenance capital expenditure is enormous relative to conventional.
   3. Never value it on a spot price. Use a normalised or strip-based deck and show sensitivity across a price range. A low P/E on peak prices is the classic cyclical value trap.
   4. Balance sheet and hedging: leverage against trough cash flow, not current cash flow, and what percentage of next year's production is already hedged and at what price.
   5. Then capital discipline, which has become the sector's main equity story: are they returning cash or reinvesting into growth at the top of the cycle? The market now pays a premium for discipline.
   6. And the long-run structural question on terminal value: what do you assume about demand in twenty years? That assumption, not this year's earnings, is what most energy disagreements are actually about.

   Where candidates lose it

   Valuing on trailing earnings at current prices. Cyclicals invert the normal multiple logic: high multiples at the trough and low multiples at the peak are the correct pattern, not an anomaly.

   Expect next

   • What price deck would you use?
   • How do you normalise a cyclical?
   • How does hedging change your view?

   Reported by candidates at Franklin Templeton (Oil and Gas, San Mateo, 2024); Perella Weinberg Partners (Investment Banking, Houston, 2025). Source: Wall Street Oasis.

3. 052What would you ask a CEO or CFO in a one-on-one meeting?Research processHardsuperdayMoody'sCorporate Finance · New York · 2018

   Say this

   Ask what you cannot get from the filings: intent, trade-offs and things they have decided not to do. Never ask for a number that is already disclosed.

   Then walk it

   1. Capital allocation intent: what returns do you require from an acquisition, and how does that compare to buying back your own stock at today's price? The answer reveals whether they think in returns or in empire.
   2. Trade-offs: if you had to choose between defending margin and defending share next year, which do you choose? This forces a real answer rather than a rehearsed one.
   3. Competitive reality: which competitor worries you most and why? CEOs answer this more candidly than they should, and it is genuinely informative.
   4. Leading indicators: what internal metric do you watch weekly that we do not see? Sometimes they name it, and now you know what to ask about every quarter.
   5. Then the question that surfaces the risk: what would have to go wrong for you to miss the plan? The hesitation matters as much as the answer.
   6. Then listen for what they avoid. In a thirty-minute meeting the topics they steer away from are usually the ones worth modelling.

   Where candidates lose it

   Asking questions answered in the last filing. Access is scarce and wasting it marks you as unprepared. Every question should be about judgement, intent or something not disclosed.

   Expect next

   • What if their answers contradicted the filings?
   • How much weight do you put on management meetings?
   • How would you verify what they told you?

   Reported by candidates at Moody's (Corporate Finance, New York, 2018). Source: Wall Street Oasis.

4. 053How would you check a company's claims independently?Research processHardtechnicalPoint72Investment Research · New York · 2026

   Say this

   Triangulate from sources the company does not control: customers, suppliers, competitors, ex-employees, regulatory filings, import and export data, job postings and pricing you can observe yourself.

   Then walk it

   1. Channel checks: talk to distributors, customers and competitors. If a company claims it is taking share, the people losing it will know.
   2. Alternative data: web traffic, app downloads, credit card panels, satellite imagery of car parks or storage tanks, shipping and customs data. Each is noisy alone but they corroborate.
   3. Public records nobody reads: regulatory filings in other jurisdictions, patent filings, litigation dockets, local permits, and the subsidiary accounts filed in countries with granular disclosure.
   4. Hiring data: job postings reveal expansion plans, technology stacks and which functions are growing, usually before anything is announced.
   5. Cross-check within the filings themselves: segment disclosures, the tax footnote and geographic breakdowns often disagree with the narrative in the press release.
   6. And the boundary that matters professionally: everything must be from public or properly sourced channels, with no material non-public information from an insider. In a hedge fund interview, saying that unprompted is the right instinct, because it is a compliance question as much as a research one.

   Where candidates lose it

   Not mentioning the compliance boundary. In a multi-manager or hedge fund interview, an enthusiastic answer about getting information from insiders is disqualifying. Name public sourcing and expert-network rules explicitly.

   Expect next

   • What are the compliance limits on expert calls?
   • How do you weigh noisy alternative data?
   • Give me an example where a check changed your view.

   Reported by candidates at Point72 (Investment Research, New York, 2026). Source: Wall Street Oasis.

5. 061How would you analyse an insurance company?Sector: financialsHardtechnicalPerella Weinberg PartnersFinancial Institutions Group · New York · 2026

   Say this

   Two businesses in one: underwriting and investing. Judge underwriting on the combined ratio and investing on the return on the float. Value it on price to book against return on equity.

   Then walk it

   1. The combined ratio is the core underwriting metric: claims plus expenses divided by premiums. Below 100 means underwriting profit; above 100 means they lose money on insurance and rely on investment income.
   2. The float is the money collected as premiums before claims are paid. A company with a combined ratio under 100 is effectively being paid to hold other people's money, which is the whole Berkshire insight.
   3. Reserving is where the judgement and the risk sit. Reserves are estimates of future claims, so an under-reserved insurer looks profitable until it does not. Watch reserve development, which shows whether prior years' estimates proved too low.
   4. The investment portfolio matters for duration and credit risk. A long-tail insurer holds long assets, so it is highly rate-sensitive on both sides.
   5. Valuation is price to book against ROE, like a bank. Life insurers add embedded value and the new business margin, because the economics span decades.
   6. And know the cycle: insurance pricing is cyclical, hardening after large loss events and softening when capital floods in. Where you are in that cycle drives the sector's earnings more than any single company's skill.

   Where candidates lose it

   Treating it as a normal company with revenue and margin. The distinctive content is the combined ratio, the float and reserve adequacy. Missing reserving means missing the main way insurers surprise negatively.

   Expect next

   • What is reserve development and why does it matter?
   • How do rising rates affect an insurer?
   • How would you value a life insurer differently?

   Reported by candidates at Perella Weinberg Partners (Financial Institutions Group, New York, 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. 065How would you allocate a $100 million mandate across a portfolio of funds?Portfolio and riskHardsuperdayMSCIRisk Management · Remote · 2013The Vanguard GroupInvestment Research · Malvern · 2024

   Say this

   Start from the objective and the constraints, not from the funds. Required return, risk tolerance, liquidity needs, time horizon and any restrictions. Then build the strategic asset allocation, then select managers within it.

   Then walk it

   1. Establish the mandate first: what return is required, over what horizon, with what drawdown tolerance, what liquidity is needed and what restrictions apply. Everything follows from these.
   2. Set the strategic asset allocation across asset classes. That decision drives the large majority of the variance in outcomes; manager selection is second-order.
   3. Then decide active versus passive by asset class. Use passive where markets are efficient and active where dispersion is high and there is evidence of persistent skill.
   4. Then select managers on process rather than past returns. Understand the source of the edge, whether the team is stable, whether assets have grown beyond the capacity of the strategy, and what the fee structure does to net returns.
   5. Then look at the combination rather than each fund alone. Correlation between managers is what determines portfolio risk, and three managers running the same factor exposure is one position with three fee loads.
   6. Then build in the governance: rebalancing rules, review triggers, and a plan for what would cause redemption. Deciding the sell criteria in advance is what prevents performance-chasing.

   Where candidates lose it

   Jumping straight to picking funds. The correct structure is objectives, then asset allocation, then managers, then monitoring. Also, ignoring correlation between managers, which is the most common real-world error in multi-manager portfolios.

   Expect next

   • What risk-return targets would you set for an institutional investor?
   • How do you judge whether a manager has skill or luck?
   • How would you build a portfolio for different client needs?

   Reported by candidates at MSCI (Risk Management, Remote, 2013); The Vanguard Group (Investment Research, Malvern, 2024). Source: Wall Street Oasis.

8. 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.

9. 073How would you analyse an Indian bank versus a US bank?Sector: financialsHardtechnicalCSCredit SuisseInvestment Banking · Mumbai · 2020

   Say this

   The framework is the same, price to book against return on equity, but the drivers differ. Indian banks are a credit growth and asset quality story with a large public sector overhang; US banks are a rate cycle, fee income and capital return story.

   Then walk it

   1. Common framework: net interest margin, loan growth, cost-to-income, credit costs, and capital adequacy. Value on price to adjusted book against sustainable ROE.
   2. India-specific: asset quality dominates. Gross and net non-performing assets, provision coverage, slippage ratio and restructured book are the numbers the market trades on. The 2015 to 2020 asset quality review cycle is the reference point for why.
   3. Structural difference: a large public sector banking system with different governance, capitalisation and lending incentives from the private banks. The valuation gap between the two groups is persistent and is really a governance and growth gap.
   4. Growth profile: Indian banks operate in an underpenetrated credit market with structurally higher nominal loan growth, so the market pays for growth in a way it does not in the US.
   5. Funding: the CASA ratio, the share of low-cost current and savings deposits, is the key competitive advantage in India and is watched closely. In the US the equivalent focus is on deposit beta.
   6. US-specific: fee and trading income is a much larger share of revenue for the large banks, regulatory capital and stress testing drive buybacks, and the rate cycle drives net interest income more sharply.

   Where candidates lose it

   Applying a US framework wholesale. An India-based interviewer will expect CASA, slippages, provision coverage and the public-versus-private distinction by name. Knowing the local vocabulary is the test.

   Expect next

   • What is the CASA ratio and why does it matter?
   • Why do private banks trade at a premium to public sector banks?
   • How do you forecast credit costs through a cycle?

   Reported by candidates at Credit Suisse (Investment Banking, Mumbai, 2020). Source: Wall Street Oasis.

10. 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.

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.