Equity Research Analyst Interview Questions UK: 8 Real Questions and What Interviewers Want

Applying for a Equity Research Analyst job in the UK? Here is what you are likely to be asked. These questions come from our Equity Research Analyst question bank of 16 questions, written for UK employers at mid-level level.

Eight Equity Research Analyst interview questions, and what the interviewer is thinking

1. Talk me through how you would build an earnings model for a company you cover.

Why they ask: The earnings model is the analyst's core working tool and shows modelling discipline.

2. How do you decide on a valuation method and a target price for a stock?

Why they ask: Target price and rating are the central output of research, so the logic must be sound.

3. Which valuation measures would you use for a bank, an insurer, a REIT and a mining company, and why?

Why they ask: Sector-specific valuation shows depth beyond generic textbook methods.

4. What rules govern investment research in the UK, and how do they affect how you work?

Why they ask: Regulated research must be independent and conflicts managed, so you need to know the framework.

5. When a company reports results, what do you look at first, and how do you judge the quality of earnings?

Why they ask: Results day is the core test of an analyst's speed and judgement.

6. A company you cover issues a profit warning at 7am and the sales desk wants your view within the hour. What do you do?

Why they ask: Tests speed, accuracy and discipline under market pressure.

7. Tell me about a time your forecast or recommendation differed significantly from consensus. What happened?

Why they ask: Reveals the quality of your analysis, conviction and willingness to learn from outcomes.

8. What does a typical day as an Equity Research Analyst involve, and how does it change in results season?

Why they ask: Checks realistic understanding of the working rhythm and demands.

A sample answer to question 1

Talk me through how you would build an earnings model for a company you cover.

I start with the last three to five years of reported numbers from annual reports and results presentations, and rebuild the income statement, balance sheet and cash flow so they link and balance. Then I decide the key drivers for the sector, for instance volume and price by segment for an industrial, like-for-like sales and space growth for a retailer, or net interest margin and cost of risk for a bank. Revenue is forecast from those drivers, and costs are modelled as fixed or variable with operating leverage in mind. I forecast working capital, capex, tax, interest and share count, so earnings per share and free cash flow come out of the three statements, not hard-coded. I separate underlying from statutory items and consider IFRS 16 effects on leases. I keep assumptions on a clear input sheet, test sensitivities, and include a bear, base and bull case.

Common mistake to avoid: Hard-coding forecasts; ignoring sector-specific drivers

Want the rest?

Full model answers, key points and common mistakes for all 16 questions are on the Equity Research Analyst interview questions page. The first five are free, no sign-up needed.