Richa Motwani

Equity Interview Question series (10/15)

Here is the asset side of the balance sheet for three companies. Based on the asset mix, which one is most likely a service-based company?

YouTube does not allow images and poll options together, so please comment A, B, or C and share your reason.

20 minutes ago | [YT] | 0

Richa Motwani

Equity Research Interview Question Series (9/15)

ABC Group, a global mining and metals corporation;
NCM Corporation, a mini-mill steel producer; and
BBerry, a luxury fashion house.

For which company would a supplier prefer the quick ratio over the current ratio?

1 day ago | [YT] | 3

Richa Motwani

Equity Research Interview Question Series (8/15)


For telecom equity research, which is the true North Star metric? When initiating coverage on a telecom stock, which metric do equity research analysts prioritize first in their model and comps?

What’s a North Star Metric? The single KPI that best captures core customer value and drives long-term business success.

1 day ago | [YT] | 4

Richa Motwani

Equity Research Interview Question Series (7/15)

Focus on the options - because to define beta in your interviews really you need to be precise.

A stock has a beta of 1.0. What does this MOST accurately imply?

2 days ago | [YT] | 4

Richa Motwani

Equity Research Interview Question Series (6/15)

Cost of Equity using CAPM is calculated as:

Cost of Equity = Rf + beta × (Rm − Rf)

WACC is the weighted average of the cost of equity and the after-tax cost of debt.

If a company increases its debt, while its underlying business risk remains unchanged, what is the most likely impact on equity beta?

3 days ago | [YT] | 8

Richa Motwani

Equity Research Interview Question Series (5/15)

Commonly asked question -

What would you adjust to go from FCFF to FCFE typically?

1. Add net borrowings to FCFF
2. Subtract change in working capital from FCFF
3. Subtract interest payments from FCFF
4. Subtract tax adjusted interest payments from FCFF
5. Subtract net borrowings to FCFF
6. Add cash to FCFF
7. Add tax adjusted interest payments to FCFF

4 days ago | [YT] | 5

Richa Motwani

Equity Research Interview Question Series (4/15)

Company A and B both have Debt/Equity of 2.0x. Select reasons why one may be much riskier than the other.

Which statements are correct?
1. Company A has mostly short-term, floating-rate debt; Company B has long-term, fixed-rate debt.

2. Company A operates in a cyclical, volatile industry; Company B is in a stable, regulated utility.

3. Company A's EBITDA is more volatile and interest coverage is lower than Company B's.

4. Because their Debt/Equity ratios are identical, both companies have the same financial risk.

6 days ago | [YT] | 6

Richa Motwani

Equity Research Interview Question Series (3/15)

Net income is flat, but basic EPS increased.
Select possible combination of reasons why this can happen and which line items you'd check.

A. One-time gain below operating line boosted EPS.
B. Dilutive options or convertibles were exercised
C. Large equity issuance during the year.
D. Share buybacks reduced the number of shares outstanding
E. Only revenue growth can drive EPS higher

6 days ago | [YT] | 8

Richa Motwani

Equity Research Interview Series (2/15)

A company reports strong revenue growth but consistently negative operating cash flow. What is the MOST likely explanation?

1 week ago | [YT] | 8

Richa Motwani

Hello Everyone!!

Let’s start Equity Research Interview Question Series

Please note:
In real equity research interviews, questions are rarely asked in a fixed format. The same concept might appear as a direct question, or as a broader discussion like “how would you analyze this company” or “walk me through your thinking.”

The questions in this series are meant to train how you think, not what you memorize. Focus on the logic behind each answer. If you understand the reasoning, you will be able to handle both standalone questions and open-ended interview discussions.


Question (1/15)

When initiating coverage on a company, what should an equity research analyst focus on first?

1 week ago | [YT] | 16