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Equity Research, Financial Modelling and Valuation - Interview Questions
Equity Research, Financial Modelling and Valuation - Interview Questions
Equity Research, Financial Modelling and Valuation - Interview Questions
When is company valued using book value and when is enterprise value used?
ROCE vs ROIC
As an equity analyst which are the three most important ratios you have analysed to make a
buy/sell/hold recommendation?
Which ratios have you analysed to evaluate the liquidity position of the company to confirm that
the working capital is being managed efficiently?
How did you arrive at major assumptions which were considered during projecting revenue and
cost model of your company researched?
What are the major structural changes / developments which is likely to impact the industry
dynamics of the company / companies you have worked upon?
How did you assume the risk-free rate in calculating cost of equity in valuation process?
For which type of companies PEG ratio is used for relative valuation?
What is the difference between adjusted EPS and diluted EPS? Explain with example.
If you wish to increase sales for a company, then how you will do it?
Explain deferred revenues giving examples of companies from manufacturing sector as well as
service industry
State 4 items from profit and loss account which are linked in cash flow statement