Morgan Stanley Interview Guide – The Best Way to Prepare!

As an excellent student or a fresh graduate, you may have the ambition, talent, and drive to perform outstandingly in investment banking. What better place to start this journey than Morgan Stanley? The catch is you should be ready for what’s to come.

To help you out, this Morgan Stanley interview guide will reveal to you:

✔ 6 stages of the recruiting process.
✔ How long does it take to go through all these stages until you are on board?
✔ What questions should be expected in HireVue, as well as the initial and final interviews?
✔ Tips to prepare yourself for the interview.
✔ Ways to prepare for a better shot at success.

What Is the Recruiting Process at Morgan Stanley Like?

The Morgan Stanley Summer Analyst, Associate, and Internship programs offer students and fresh graduates an exciting way to learn the ins and outs of financial services workflows related to investment banking. These include capital markets, equity, wealth management, and others.

However, to be considered for this role, you have to go through a rigorous 6-stage recruiting process:

1. Application Submission

The first step is to go to the Morgan Stanley investment banking website, click Careers, and select “Students & Graduates”. Then, click “Search for Opportunities” > “Opportunities for Students & Graduates”. Here, select any of the open roles available that match your qualification, and click “Apply Now”.

Next, register with the Morgan Stanley job portal and fill in your personal details (name, contact, address, and upload a resume and sometimes a cover letter).

Now, recruiters will review your application to verify whether you meet the basic requirements for the role. If so, you will be asked to take an online assessment test (HireVue interview).

2. Online Assessment (HireVue)

In this stage, you’ll undergo an online test organized using the HireVue intelligent assessment service to evaluate your cognitive abilities, verbal reasoning, logic perception, and problem-solving skills.

You’ll be provided with a set of questions and have 30 seconds to prepare the answer and then another 2 minutes to record them. These tests often present scenarios that you might face on the job and ask you to choose the best course of action.

Based on online assessment results, the hiring managers may shortlist you for the first-round interviews.

3. First-Round Interviews at Morgan Stanley

If successful in the HireVue stage, you'll be invited to a first-round interview, which the Morgan Stanley recruiters conduct over the phone or via video conferencing. These interviews focus on what you’ve studied and learned based on the role you applied for in investment banking, along with the motivation for joining the firm.

4. Assessment Center

After clearing the first-round interviews, next up is to participate in an assessment center based on your role:

• Group Exercises: Participate in group sessions to demonstrate your leadership skills in investment banking, communication skills, and ability to work as a team to produce results.
• Case Studies: Analyze a business case in investment banking and present your findings.
• In-Person Interviews: Answer behavioral and financial questions to further analyze your fit for your role and company culture.

5. Morgan Stanley Final Interviews

After winning the assessment center round, you'll proceed to a round of final interviews. During these interviews, you’ll answer the same or somewhat different financial and fit questions in the earlier round while meeting with a panel of senior managers and executives.

They will test your knowledge of investment banking, any internships and training you might have gone through, or your proficiency in technology, including algorithms, data structures, operating systems, database management, networking, etc.

Clearing this stage almost cements your role as an investment banker at Morgan Stanley. But there’s still a formality left.

6. Offer and Onboarding

As a successful candidate, you receive a formal offer to join Morgan Stanley as a Summer Analyst, Intern, or Associate. This includes details on compensation, benefits, and other employment terms.

At the same time, Morgan Stanley conducts background checks, which may include internship verification, education verification, and criminal records.

After accepting the offer, the onboarding process begins, which involves training and orientation to help you adjust to the company's work environment.

What Is the Timeline for the Recruiting Process at Morgan Stanley?

The recruiting timeline at Morgan Stanley for students and fresh graduates can be around 5 to 6 months. Here is the breakdown.

• AUG-SEP: Openings are in August, and the deadline for the application submission is late September (Better to apply fast).
• SEP-OCT: Invitation to online assessment in early October and commencement at the end of October.
• OCT-NOV: First-round interviews for candidates who pass the online assessment (HireVue).
• NOV-DEC: Invitation to assessment center/technical round.
• DEC-JAN: Final round interviews.
• JAN-FEB: Offer letter at the start of February, background checks, and a deadline to accept it by the end of the month.

After accepting the offer letter, the Summer Analyst, Associate, or Internship programs usually start in early June.

What Questions Should You Expect in Morgan Stanley Interviews?

The questions in different interview stages of Morgan Stanley's recruiting process can be a mix of simple and tricky questions. Here are a few examples below:

💻 Online Assessment (HireVue)

• Walk me through a DCF valuation.
• What is working capital, and how is it calculated?
• What are the different valuation methodologies?
• What is the difference between equity value and enterprise value?
• Why might a company choose to issue debt instead of equity?

💬 First Interviews

Walk me through the three financial statements and how they connect with each other.

• What is EBITDA, and how is it used?
• How do you calculate WACC?
• Explain the concept of terminal growth rate and its impact on DCF valuation.
• What are the multiples commonly used in valuation?
• What is the current state of the IPO market?
• How would you calculate the Enterprise Value of a company?
• How can current market conditions affect a company's valuation?

🏢 Assessment Centre

Financial Questions:

• How would you value a company with no earnings?
• Explain the difference between operating profit and net income.
• What factors affect a company's beta?
• How does a change in interest rates affect bond prices?
• What’s the difference between systematic and unsystematic risk?

➡ Financial Case Example:

You are an investment banking analyst at Morgan Stanley. A tech startup, "NovaTech," is considering an IPO. They have provided you with the following information:

• Revenue has gone up at a CAGR of 50% over the past three years.
• The company suffered from major losses due to high R&D expenses.
• They have a strong patent portfolio and a loyal customer base.
• The market for their product is expected to grow rapidly in the next five years.

Your task is as follows:

• Conduct a preliminary valuation of NovaTech using appropriate valuation methodologies.
• Point out key risks and opportunities associated with the investment.
• Develop a potential IPO valuation range.
• Prepare a brief presentation outlining your findings and recommendations.

🗣️ Final Interviews

• Discuss the current state of the equity market. What factors are driving it?
• Walk me through an LBO model and explain how to calculate IRR and MoM.
• What are the differences between GAAP and IFRS accounting standards?
• What are the key metrics to analyze in a tech company versus a manufacturing company?
• How would you handle a situation where a colleague is making unethical decisions?
• How do you calculate synergies in an M&A deal?
• What are the different types of merger structures and when would you use each?

👉 To prepare for the demanding interview rounds at Morgan Stanley, check out our Guide on Technical Questions in the Investment Banking Interview.

Besides the financial questions, you will be asked fit questions in almost every stage of the interview process. Here are some examples:

• Tell me about yourself.
• Why Morgan Stanley?
• Why investment banking?
• Walk me through your resume.
• What are your strengths and weaknesses?
• Why should we hire you?

How Can You Prepare for Morgan Stanley Interviews?

Morgan Stanley interviews are no easy feat. You can’t take them lightly. Being overconfident and ignoring the obvious factors can result in rejection. That’s why there are a few things you should be aware of.

• First, familiarize yourself with the firm's history, culture, values, and recent news. The best way to do that is to attend Morgan Stanley’s student ambassador events and watch their educational webinars.
• When you show up for interviews, confidence in your skills means everything to convince the recruiter. Also, never hesitate to ask additional questions to clarify instead of lying and trying to cover up by giving ridiculous answers. If you don’t know the answer, just tell the truth and show your willingness to learn about it.
• Another mistake most candidates make is they try to memorize the key points in the questions. The problem here is that when answering, some of them slip from your mind, and your response becomes absurd. Therefore, always note what the recruiter is asking on paper or your device’s notepad so you won’t miss out on details while answering.
• Lastly, don’t spend too much time replying to one question, especially if you don’t know the answer. This is because the recruiters are not expecting you to answer all the questions. On average, a 70%-80% correct answer rate is enough to get you through.
  

Final Thoughts

To be in Morgan Stanley’s Summer Analyst, Associate, or Internship programs is a big moment. You are headed in the right way to develop your skills and become financially stable. But remember that Morgan Stanley is not only looking for those with impressive academic records and agile thinkers. In their interviews, they’ll test your communication and problem-solving skills to see if you belong in a fast-paced environment. We wish you much success! 🚀