Equity Research Associate Interview Questions and Answers

Yes, I have done analysis of companies and used various methods to value them.

• I have used the discounted cash flow (DCF) method to value companies by estimating their future cash flows and discounting them to their present value.

• I have also used the comparable company analysis (CCA) method to value companies by comparing their financial ratios and multiples to those of similar companies in the industry.

• Furthermore, I have employed the precedent transaction analysis (PTA) meth...read more

The company operates in the technology industry and provides software and hardware solutions for personal computers and mobile devices.

• The company's main products include operating systems, productivity software, and gaming consoles.

• It also offers cloud services and hardware devices such as the Surface tablet and Xbox gaming console.

• The company competes with other technology giants such as Apple, Google, and Amazon.

• Its revenue is primarily generated through the sale of softwa...read more

I will look at financial, industry, and management parameters to analyze any company.

• Financial parameters such as revenue, profit margin, debt-to-equity ratio, and cash flow.

• Industry parameters such as market share, competition, and growth potential.

• Management parameters such as leadership, corporate governance, and employee satisfaction.

• Other parameters such as regulatory environment, macroeconomic factors, and technological advancements.

• Example: For a tech company, I would ...read more

I will look for information from various sources including financial statements, news articles, industry reports, and company presentations.

• Financial statements

• News articles

• Industry reports

• Company presentations

• Analyst reports

• SEC filings

• Conference calls

• Competitor analysis

• Social media

• Expert opinions

Equity research involves analyzing financial data and market trends to provide investment recommendations on stocks.

• Equity research is conducted by analysts who study companies and industries to provide insights on stock performance.

• Analysts use financial data, market trends, and other information to make investment recommendations.

• Equity research reports typically include a company overview, financial analysis, and investment recommendation.

• Equity research is used by investo...read more