Equity Research Interview Questions | Glassdoor

Equity Research Interview Questions

249

Equity research interview questions shared by candidates

Top Interview Questions

Sort: RelevancePopular Date

Advantages of using EBITDA over enterprise value in the valuation process.

2 Answers

EBITDA is unrelated to enterprise value. EBITDA is earnings before interest, taxes, depreciation and amortization. It is a relatively useless indication of a company's real earning power according to warren buffett, charlie munger, ben graham and value investors et al. EV is market cap + debt - cash and cash equivalents. This looks like it was a quick question to see if the candidate is full of it : )

I think when he said "over", he was using it to signify "divided by, as in Enterprise Value/EBITDA. The advantage is that it allows you to compare firms of different sizes and capital structures, as EV is the whole pie and EBITDA flows to both debt and equity holders. A similar question I have gotten is: "What would you use as a numerator if your denominator were EBITDA: Enterprise Value or Equity Value?"

How would you invest $10 million today?

2 Answers

Given the cost for Verizon to purchase each iPhone, the price the customer pays, and the churn rate of customers, what is the average lifespan of an iphone customer on Verizon?

1 Answer

Pitch stock recommendations (specifically related to a sector I'd covered in a previous job).

1 Answer

Looking for adaptability to their trading style. Long/Short, Market Neutral, higher volume trading style.

1 Answer

When the discount rate is lowered in a DCF model, what happens to NPV?

1 Answer

How would you identify a company's success looking backwards if you were given 10 yrs of financial statements?

1 Answer

Where does net income fall on the balance sheet?

1 Answer

Proof read an outgoing Earning update

1 Answer

What are your investment recommendations?

1 Answer
110 of 249 Interview Questions