Investment Banking Analyst
Interview Questions.
15 practice questions across 11 skills — each with what the interviewer is really listening for. Prepare with intent, not guesswork.
Free · No signup · Grouped by skill
How to use this page
Don't memorise answers. For each question, read what the interviewer is looking for, then practise answering out loud in your own words with a real example. The notes describe strong answers and common red flags — they are for your prep, not a script.
DCF
1 questionWalk me through a DCF from top to bottom.
AdvancedWhat the interviewer is looking for: Strong answers project unlevered free cash flows, discount at WACC, add a terminal value, and bridge to equity value, explaining each step. Fumbling the structure or terminal value is a red flag for this role.
Valuation
1 questionWhat are the main valuation methodologies, and when does each give a higher or lower value?
AdvancedWhat the interviewer is looking for: Look for DCF, comparable companies, precedent transactions, and LBO, with an understanding that precedents/control premiums tend higher. Not knowing the standard methods is a red flag.
Financial Modeling
2 questionsHow do you build a three-statement model and make sure it ties out?
AdvancedWhat the interviewer is looking for: Strong candidates link the statements correctly, drive from assumptions, and have the balance sheet balance, with checks. Circular references left unmanaged or a non-balancing model are red flags.
How do you double-check your work so an error never reaches a managing director or client?
IntermediateWhat the interviewer is looking for: Strong answers build in sanity checks, tie-outs, and a review habit. A casual attitude to accuracy is a serious red flag in banking.
Financial Statement Analysis
1 questionWhy might a company with rising net income still be a risky acquisition?
AdvancedWhat the interviewer is looking for: Look for cash flow versus accrual, leverage, quality of earnings, and off-balance-sheet items. Trusting net income alone is a red flag.
Comparable Company Analysis
1 questionHow do you select a set of comparable companies, and what multiples do you use?
AdvancedWhat the interviewer is looking for: Strong answers pick true peers by business and size, use EV/EBITDA and similar, and adjust for differences. Picking comps loosely or ignoring adjustments is a red flag.
M&A
1 questionAt a high level, how does an LBO create returns for a sponsor?
AdvancedWhat the interviewer is looking for: Look for leverage, cash flow to pay down debt, operational improvement, and multiple expansion. Not understanding how leverage amplifies returns is a red flag.
Pitch Books
1 questionWhat goes into a pitch book, and what is its purpose?
IntermediateWhat the interviewer is looking for: Strong candidates describe market context, the bank's credentials, and a tailored strategic recommendation for the client. Treating it as a generic template is a red flag.
Excel
1 questionHow do you keep a complex Excel model efficient, auditable, and error-free?
IntermediateWhat the interviewer is looking for: Look for consistent formatting, clear assumptions, no hardcodes in formulas, and checks, plus keyboard efficiency. Fragile, unlabeled models are a red flag in banking.
PowerPoint
1 questionHow do you make a PowerPoint page clearly convey a single message to a client?
BasicWhat the interviewer is looking for: Strong answers use an action title, clean exhibits, and one point per page. Cluttered pages with no takeaway are a red flag.
Capital Markets
1 questionHow would you value a company in a sector affected by rising interest rates?
AdvancedWhat the interviewer is looking for: Look for understanding how rates affect discount rates, debt costs, and multiples. Ignoring the macro impact on valuation is a red flag.
Business Acumen
2 questionsYou spot an error in a model going to the client in an hour. What do you do?
IntermediateWhat the interviewer is looking for: Strong candidates flag it immediately, fix it, and check for related errors, valuing accuracy over ego. Hiding the error is a serious red flag.
How do you manage extremely long hours and multiple deadlines without quality slipping?
BasicWhat the interviewer is looking for: Look for prioritisation, attention to detail under pressure, and communicating capacity honestly. Cutting corners on accuracy to save time is a red flag in this role.
Behavioural & role-general
2 questionsWhy investment banking, and how do you know what the job actually involves?
BasicWhat the interviewer is looking for: Look for a realistic understanding of the work and hours and genuine motivation. Naive or purely money-driven answers with no grasp of the role are a red flag.
Tell me about a time you caught a mistake others missed. How?
BasicWhat the interviewer is looking for: Strong candidates show diligence, checking work, and a quality mindset. Being unable to give an example suggests weak attention to detail.