Equity Research Analyst Jobs are one of the highest paying jobs in the trading industry. And when such is the kind of a job, one needs to be extra prepared when they’re going for Equity Research Analyst Internship or Equity Research Analyst Jobs. And to make sure that you are prepared well for the Equity Research Analyst Interview Questions while you sit there in the HR’s room, we have this blog for you.
Check out the Equity Research Analyst Interview Questions that are asked most frequently to the candidates. Get ready with these questions for once and for all so that you don’t shake your legs whenever you’re being asked these questions again.
What are the skills required for an Equity Research Analyst Job?
The Equity Research Analyst must be highly alert and attentive. He must make formed decisions while recommending purchases etc. He should be able to judge the situations well. The Equity Research Analyst must be well versed with various terminologies etc. and understand the working of the different markets.
What’s the difference between equity value and enterprise value?
So this is one of the most important Equities Research Analyst Interview Questions. In this question, your basic knowledge would be tested. So you can answer something like:
The Enterprise value can be defined as the Market Value of Common Stock + Market Value of Preferred Stock + Market Value of Debt + Minority Interest – Cash & Investments.
On the other hand, the equity value is Market Capitalization + Stock Options + Value of Equity Issued from convertible securities – Proceeds from the conversion of convertible securities.
So, based on the Enterprise value, an investor can understand the current scenario of the company. On the other hand, based on the equity value of the company, investors can make investment decisions in the company.
What is Financial Modelling
This question is going to showcase whether you really know about company projections etc. You can always use such type of questions to showcase your presentational skills. It’d be better if you go prepared with some case studies to present at that particular moment.
So Financial Modelling is nothing but the process of presenting the finances of a company in an organized manner. The Equity Research Analyst Job Description is going to hold up a large part of the presentation work as well. So be ready with it.
In Financial Modelling, what really happens is that balance sheets, cash flows, and income statements are forecasted for the upcoming years.
What is Free Cash Flow to Firm?
It is one of the top Equity Research Analyst Salary Questions. What it means is the excess cash that is generated after taking into consideration the working capital requirements along with the working capital requirements for maintaining and renewing the fixed assets.
The Free Cash Flow to Firm can be calculated by EBIT x (1 – Tax rate) + Non-cash charges + Changes in working capital – Capital Expenditure
So, these were some of the questions that you should prepare for yourself while you are preparing for the interview for the Equity Research Analysis Course in Delhi. The Job itself can be very challenging, but more than that, finding a good company to help you practice can also become quite challenging. Therefore, prepare these questions well as these are some of the most asked ones.
Along with these questions, be prepared with the ones like:
- Tell me about yourself
- Where do you see yourself five years from now
- How could you perform better than our existing employees
- What are your strengths and weaknesses
So, before you start answering these questions, make sure you take out a piece of paper and write down the answers first. Make sure when you are telling the answers to these questions for your Equity Research Analyst Interview Questions, you are giving answers that revolve around your job responsibility only.