Introduction

Breaking into investment banking is highly competitive, and technical interviews are designed to separate candidates who truly understand finance from those who don't. These interviews aren’t just about knowing definitions—they’re about applying concepts under pressure. In this blog, we’ll walk you through the most commonly asked technical questions in investment banking interviews and give you the tools to answer them with confidence.

Technical questions in investment banking interviews typically focus on three key areas: valuation, accounting, and financial modeling. These questions test your analytical skills and your ability to apply financial theory to real-world problems.

Sample Questions:

• Walk me through a DCF.
• How do you value a company?
• What happens to the financial statements when depreciation increases?
• What are the three main valuation methods?
• How does working capital affect cash flow?

To prepare effectively:

• Start by mastering the basics of accounting. Know how the income statement, balance sheet, and cash flow statement interact.
• Practice building financial models from scratch. Plenty of online resources and courses offer templates to work from.
• Get familiar with valuation techniques: DCF, comparable company analysis, precedent transactions, and LBOs.
• Use guides like the Wall Street Prep or Breaking Into Wall Street interview guides, and test your skills in mock interviews.

Conclusion

Mastering these technical questions shows you can think critically and apply financial concepts confidently. At Circle Square, we know our clients inside out. We’ll help you prepare by sharing detailed insights on the types of technical questions each firm tends to ask—so you're not just practicing, you're practicing with purpose.