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MORGAN STANLEY

Investment Banking Division | Global Capital Markets

Summer Analyst Interview Preparation Guide

A 30-Day Roadmap Across Four Pillars

Accounting	Valuation & Modeling	Markets & Affairs	Behavioral
Week 1	Week 2	Week 3	Week 4

Built for ~2–3 focused hours per day • Consistency over intensity

How to Use This Guide

This roadmap runs on roughly 2–3 focused hours per day for 30 consecutive days, organized around four pillars that mirror how Morgan Stanley interviewers actually probe candidates: Accounting, Valuation & Financial Modeling, Markets & Current Affairs, and Behavioral Interviews. Each day below lists a focus area and a concrete end-of-day deliverable — the goal is not to “read about” a topic but to produce something (a model, a summary, a spoken answer) that proves you understood it.

Two habits matter more than any single day’s content: reviewing what you learned the day before for 10 minutes before starting new material, and speaking your answers out loud rather than only writing them, since interviews are verbal.

The Four Pillars

Pillar	What It Covers
Accounting	The language of the three financial statements — how they’re built, how they connect, and how a single change (e.g., a depreciation increase) ripples through all three.
Valuation & Financial Modeling	Comparable companies, precedent transactions, DCF, accretion/dilution, LBO basics, and the Excel fluency to build all of it under time pressure.
Markets & Current Affairs	Rates, indices, IPOs, QIPs, and the major deals shaping the industry right now — the material that separates a prepared candidate from a memorized one.
Behavioral Interviews	Your story, your motivation for Morgan Stanley and IBD specifically, and how you’ve handled pressure, conflict, and failure.

30-Day Roadmap

Week 1 — Build Your Finance Foundation

Day	Focus Areas	End-of-Day Deliverable
Day 1	Industry orientation: how IBD/GCM fit within Morgan Stanley; the analyst’s role in a deal team; read the firm’s latest 10-K segment overview (Institutional Securities, Wealth Management, Investment Management).	One-page summary of MS’s three business segments.
Day 2	Income Statement, Balance Sheet, and Cash Flow Statement — line items, purpose, and what each tells an analyst about a business.	Hand-drawn skeleton of all three statements from memory.
Day 3	How the three statements link: net income to retained earnings and CFS; capex/depreciation to PP&E; the balancing plug logic.	Answer 10 statement-linkage questions untimed.
Day 4	Ratio analysis: liquidity, leverage, profitability, and efficiency ratios; what “good” looks like by sector.	Compute 8 ratios for one real company’s latest filing.
Day 5	Enterprise Value vs. Equity Value; market capitalization; net debt and its components; why the two values diverge.	EV bridge built for one comparable company.
Day 6	EBITDA vs. EBIT vs. Net Income; unlevered vs. levered Free Cash Flow; why bankers prefer EBITDA multiples.	FCF build from EBITDA for a sample income statement.
Day 7	Full-week review; timed accounting drill.	25 accounting questions solved in under 40 minutes.

Week 2 — Valuation & Corporate Finance

Day	Focus Areas	End-of-Day Deliverable
Day 8	Comparable Company Analysis: selecting a peer set, calendarizing financials, calculating and interpreting trading multiples (EV/EBITDA, EV/Revenue, P/E).	5-company comps set with multiples calculated.
Day 9	Precedent Transactions Analysis: sourcing deals, control premiums, why precedent multiples run higher than trading comps.	3 precedent transactions summarized with implied multiples.
Day 10	DCF fundamentals: unlevered FCF projections, the explicit forecast period, and why DCF is considered an “intrinsic” valuation.	5-year unlevered FCF projection, own template.
Day 11	WACC mechanics: cost of equity via CAPM, after-tax cost of debt, capital-structure weights; Terminal Value via Gordon Growth and Exit Multiple methods.	WACC calculated end-to-end for one company.
Day 12	Accretion / Dilution analysis: pro forma EPS impact of an all-stock vs. all-cash acquisition; the rule-of-thumb P/E crossover.	Simple accretion/dilution check on a hypothetical deal.
Day 13	LBO overview: sources & uses, entry/exit multiples, debt paydown mechanics, and the 3 drivers of equity returns (multiple expansion, EBITDA growth, deleveraging).	Sources & uses table for a sample LBO.
Day 14	Build one simple DCF model end-to-end in Excel, from revenue build to implied share price and a sensitivity table.	Completed DCF workbook with WACC/growth sensitivity grid.

Week 3 — Financial Modeling & Markets

Day	Focus Areas	End-of-Day Deliverable
Day 15	Excel fluency: keyboard-only navigation, formatting shortcuts, formula auditing, and building models without touching the mouse.	Rebuild yesterday’s DCF using only shortcuts.
Day 16	Revenue forecasting methods: growth-rate driven, unit-economics driven, and top-down/bottom-up approaches.	3-year revenue build for a chosen company.
Day 17	Cost projections: fixed vs. variable costs, operating leverage, and margin bridges.	Cost structure model tied to the Day 16 revenue build.
Day 18	Integrate the three statements into one dynamic model with a debt schedule and circularity switch.	Fully linked 3-statement model, no hardcoded links.
Day 19	Macro literacy: interest-rate policy, inflation prints, bond-yield moves, and how they flow through to valuation (discount rates, multiples).	One-paragraph macro brief on the current rate environment.
Day 20	Capital-raising processes: IPO, Rights Issue, Qualified Institutional Placement (QIP), and Follow-on Public Offer (FPO) — mechanics and use cases.	Comparison table of the four processes.
Day 21	Read and summarize one recent annual report (e.g., Reliance Industries or HDFC Bank) end-to-end.	One-page investment summary with 3 key takeaways.

Week 4 — Interview Preparation

Day	Focus Areas	End-of-Day Deliverable
Day 22	Behavioral core: “Tell me about yourself,” “Why Morgan Stanley?,” “Why investment banking?,” and one leadership story — all in STAR format.	4 stories drafted and timed at 90 seconds each.
Day 23	Core technicals: walk through a DCF end-to-end, EV/EBITDA rationale, EV vs. Equity Value distinctions.	Deliver the DCF walkthrough out loud, unscripted.
Day 24	Applied accounting: depreciation increase flow-through, inventory write-downs, deferred tax mechanics.	Whiteboard the 3-statement impact of each scenario.
Day 25	Markets and current affairs: recent equity market moves, RBI policy stance, US Federal Reserve decisions, notable recent IPOs and M&A deals.	5 talking points on current markets, sourced this week.
Day 26	Brain teasers and mental math drills: percentages, multiples, quick estimation under time pressure.	20 mental-math problems solved in 10 minutes.
Day 27	Full mock interview: 1 behavioral round + 1 technical round, recorded if possible.	Self-review notes on 3 things to improve.
Day 28	Targeted review of the weakest pillar identified from the Day 27 mock.	Weak-area gap closed with 10 extra practice questions.
Day 29	Second mock interview covering both technical and HR/behavioral rounds, ideally with a different reviewer.	Improvement confirmed vs. Day 27 baseline.
Day 30	Light revision only: valuation formulas, accounting concepts, market headlines, and Morgan Stanley company research.	One-page personal cheat sheet, reviewed and rested.

Must-Know Technical Questions — With Model Answers

These are framed as concise, interview-ready answers. Practice saying each one out loud in under 60 seconds before your mock interviews.

Walk me through the three financial statements.
The Income Statement shows revenue, expenses, and net income over a period. The Balance Sheet is a snapshot of assets, liabilities, and equity at a point in time. The Cash Flow Statement bridges the two by showing how net income translates into actual cash across operating, investing, and financing activities.
How do the three statements link together?
Net income flows from the Income Statement into the Cash Flow Statement (starting point for CFO) and into Retained Earnings on the Balance Sheet. Capex on the CFS reduces cash and increases PP&E on the Balance Sheet; depreciation reduces PP&E and flows back through the Income Statement and as a non-cash add-back on the CFS. The ending cash balance on the CFS becomes the cash line on the Balance Sheet.
What is Free Cash Flow?
Cash generated by the business after covering operating expenses and capital expenditures. Unlevered FCF (used in a standard DCF) excludes the effect of financing decisions: EBIT × (1 − tax rate) + D&A − Capex − change in net working capital.
What is EBITDA?
Earnings Before Interest, Taxes, Depreciation, and Amortization — a proxy for a company’s core operating cash-generating ability, stripped of capital-structure and non-cash accounting effects, which makes it useful for comparing companies with different debt loads or depreciation policies.
What is the difference between Enterprise Value and Equity Value?
Equity Value is the value of the business to shareholders only (share price × shares outstanding). Enterprise Value is the value of the entire business to all capital providers: Equity Value + Total Debt + Preferred Stock + Minority Interest − Cash & Equivalents.
Why is cash subtracted when calculating Enterprise Value?
Because an acquirer buying the whole company would effectively get that cash back immediately and could use it to help pay down acquisition debt — so cash reduces the “true” cost of buying the business.
How do you value a company?
Three standard approaches, usually triangulated together: (1) Comparable Company Analysis — apply peer trading multiples; (2) Precedent Transactions Analysis — apply multiples paid in similar past M&A deals; (3) Discounted Cash Flow — project unlevered FCF and discount it back at the WACC, plus a terminal value.
Explain a DCF, step by step.
Project unlevered FCF for an explicit period (commonly 5 years); discount each year’s FCF back to present value using the WACC; calculate a Terminal Value at the end of the projection period (Gordon Growth or Exit Multiple method) and discount it back as well; sum the present values to get Enterprise Value; then bridge to Equity Value and divide by shares outstanding for an implied share price.
What is WACC?
The blended, after-tax cost of a company’s capital, weighted by its capital structure: WACC = (E/V × Cost of Equity) + (D/V × Cost of Debt × (1 − Tax Rate)), where Cost of Equity is typically derived from CAPM (Risk-Free Rate + Beta × Equity Risk Premium).
What happens to the financial statements if depreciation increases by $10?
Income Statement: EBIT falls by $10, and net income falls by $10 × (1 − tax rate). Cash Flow Statement: net income is down, but depreciation is added back, so CFO rises by $10 × tax rate (the tax shield). Balance Sheet: PP&E falls by $10 (accumulated depreciation), cash rises by the tax shield amount, and retained earnings falls by the net income decrease — the balance sheet still balances.
What is the difference between EBITDA and Operating Cash Flow?
EBITDA ignores working capital changes and taxes entirely; Operating Cash Flow starts from net income, adds back non-cash items, and also captures changes in working capital and actual cash taxes paid — so OCF is a closer proxy for real cash generated by operations.
Explain working capital.
Current Assets minus Current Liabilities — a measure of short-term operating liquidity. In modeling, analysts usually focus on the change in non-cash working capital period over period, since an increase (e.g., rising receivables or inventory) consumes cash even if the Income Statement looks healthy.
What is goodwill?
An intangible asset created in an acquisition equal to the purchase price paid above the fair value of the target’s identifiable net assets — it captures things like brand value, synergies, and workforce that don’t appear as separate line items on the target’s balance sheet.
What happens on a company’s balance sheet in an acquisition?
The target’s assets and liabilities are written up (or down) to fair value and combined with the acquirer’s; any purchase price paid above that fair value is recorded as goodwill; cash or new debt/equity used to fund the deal shows up on the acquirer’s side, and the target’s old equity is eliminated.
Why would a company issue debt instead of equity?
Debt is typically cheaper than equity (interest is tax-deductible and lenders demand a lower return than equity holders), and issuing debt avoids diluting existing shareholders — but it adds fixed obligations and financial risk, so the choice depends on the company’s existing leverage, cash-flow stability, and market conditions.

Behavioral Interview Preparation

The STAR Framework

Structure every behavioral answer as Situation (context in one sentence), Task (what you specifically needed to do), Action (what you did — this should be the bulk of the answer), and Result (the outcome, ideally quantified, plus a brief reflection). Aim for 60–90 seconds per answer.

Must-Know Behavioral Questions

Tell me about yourself.
Why Morgan Stanley?
Why investment banking?
Why should we hire you?
Tell me about a time you handled conflict.
Describe a leadership experience.
Tell me about a failure and what you learned.
Explain a complex financial concept to someone with no finance background.

Preparation Checklist

☐ Draft written answers for all 8 questions above, then compress each to bullet-point prompts (not a script to memorize).

☐ Prepare 3 distinct stories that can flex across “leadership,” “conflict,” and “failure” prompts.

☐ Research 2–3 specific, recent Morgan Stanley deals or initiatives to reference in “Why Morgan Stanley?”

☐ Prepare 2–3 thoughtful questions to ask each interviewer — avoid questions answerable via a basic Google search.

☐ Practice your “Tell me about yourself” answer until it consistently lands at 60–90 seconds.

Topics to Cover Across the Month

Interest rate policy: RBI stance and the US Federal Reserve’s latest decisions and forward guidance.
Index performance: Nifty 50, Sensex, S&P 500, and Nasdaq — direction and the reasons cited.
Primary markets: at least one recent IPO, QIP, or FPO, and the rationale behind its pricing and reception.
M&A: one recent deal, its strategic rationale, and the multiple it was reportedly valued at.
Commodities and currencies: crude oil direction and USD/INR moves, since both affect Indian corporates’ earnings.

Daily Habit (30–45 Minutes)

☐ Read business news from Bloomberg, Reuters, or The Wall Street Journal.

☐ Track the Nifty 50, S&P 500, Nasdaq, and major global market movements.

☐ Follow one recent IPO or M&A transaction and understand the rationale behind it.

☐ Review one company’s quarterly earnings and identify the key drivers.

Final-Week Mock Interview Checklist

☐ Full mock interview completed with one technical round and one behavioral round (Day 27).

☐ Weak areas from the first mock explicitly identified and re-drilled (Day 28).

☐ Second mock interview completed, ideally with a different reviewer, to test improvement (Day 29).

☐ One-page personal cheat sheet built: core formulas, your 4 behavioral stories, and 3 current market talking points (Day 30).

☐ Interview-day logistics confirmed: attire, route/login link, copies of your resume, and a notepad and pen.

Summer Analyst Internship 2027 by Morgan Stanley with Stipend Upwards 1 lakh