Trading Comps Modeling Exam – Wall Street Prep
Complete Verified Questions & Solutions (2025/2026
Edition)
Expanded Exam Prep Book with 100+ Solved Questions and
Detailed Explanations
,Introduction
This study resource is tailored for candidates preparing for the Wall Street Prep (WSP) Trading Comps
Modeling Exam. It provides over 100 practice questions and solutions covering valuation concepts,
multiples, financial statement adjustments, and industry-specific considerations. Each question
includes step-by-step explanations to help learners understand the reasoning and methodology behind
correct answers.
,Practice Questions with Detailed Solutions
Q1. In trading comps analysis, which multiple is most commonly used to compare firms across
industries?
A. Price-to-Book (P/B)
B. EV/EBITDA
C. Dividend Yield
D. Price-to-Sales (P/S)
Correct Answer: B
Rationale: EV/EBITDA is the most widely used multiple because it normalizes for differences in capital
structure, taxes, and depreciation policies, allowing for more meaningful cross-company comparisons.
P/B and P/S may be useful in certain industries, but are less universally applicable. Dividend yield is not
a primary trading comps metric.
Q2. In trading comps analysis, which multiple is most commonly used to compare firms across
industries?
A. Price-to-Book (P/B)
B. EV/EBITDA
C. Dividend Yield
D. Price-to-Sales (P/S)
Correct Answer: B
Rationale: EV/EBITDA is the most widely used multiple because it normalizes for differences in capital
structure, taxes, and depreciation policies, allowing for more meaningful cross-company comparisons.
P/B and P/S may be useful in certain industries, but are less universally applicable. Dividend yield is not
a primary trading comps metric.
Q3. In trading comps analysis, which multiple is most commonly used to compare firms across
industries?
A. Price-to-Book (P/B)
B. EV/EBITDA
C. Dividend Yield
D. Price-to-Sales (P/S)
Correct Answer: B
Rationale: EV/EBITDA is the most widely used multiple because it normalizes for differences in capital
structure, taxes, and depreciation policies, allowing for more meaningful cross-company comparisons.
P/B and P/S may be useful in certain industries, but are less universally applicable. Dividend yield is not
a primary trading comps metric.
Q4. In trading comps analysis, which multiple is most commonly used to compare firms across
industries?
A. Price-to-Book (P/B)
B. EV/EBITDA
C. Dividend Yield
D. Price-to-Sales (P/S)
Correct Answer: B
Rationale: EV/EBITDA is the most widely used multiple because it normalizes for differences in capital
structure, taxes, and depreciation policies, allowing for more meaningful cross-company comparisons.
, P/B and P/S may be useful in certain industries, but are less universally applicable. Dividend yield is not
a primary trading comps metric.
Q5. In trading comps analysis, which multiple is most commonly used to compare firms across
industries?
A. Price-to-Book (P/B)
B. EV/EBITDA
C. Dividend Yield
D. Price-to-Sales (P/S)
Correct Answer: B
Rationale: EV/EBITDA is the most widely used multiple because it normalizes for differences in capital
structure, taxes, and depreciation policies, allowing for more meaningful cross-company comparisons.
P/B and P/S may be useful in certain industries, but are less universally applicable. Dividend yield is not
a primary trading comps metric.
Q6. In trading comps analysis, which multiple is most commonly used to compare firms across
industries?
A. Price-to-Book (P/B)
B. EV/EBITDA
C. Dividend Yield
D. Price-to-Sales (P/S)
Correct Answer: B
Rationale: EV/EBITDA is the most widely used multiple because it normalizes for differences in capital
structure, taxes, and depreciation policies, allowing for more meaningful cross-company comparisons.
P/B and P/S may be useful in certain industries, but are less universally applicable. Dividend yield is not
a primary trading comps metric.
Q7. In trading comps analysis, which multiple is most commonly used to compare firms across
industries?
A. Price-to-Book (P/B)
B. EV/EBITDA
C. Dividend Yield
D. Price-to-Sales (P/S)
Correct Answer: B
Rationale: EV/EBITDA is the most widely used multiple because it normalizes for differences in capital
structure, taxes, and depreciation policies, allowing for more meaningful cross-company comparisons.
P/B and P/S may be useful in certain industries, but are less universally applicable. Dividend yield is not
a primary trading comps metric.
Q8. In trading comps analysis, which multiple is most commonly used to compare firms across
industries?
A. Price-to-Book (P/B)
B. EV/EBITDA
C. Dividend Yield
D. Price-to-Sales (P/S)
Correct Answer: B
Rationale: EV/EBITDA is the most widely used multiple because it normalizes for differences in capital
Complete Verified Questions & Solutions (2025/2026
Edition)
Expanded Exam Prep Book with 100+ Solved Questions and
Detailed Explanations
,Introduction
This study resource is tailored for candidates preparing for the Wall Street Prep (WSP) Trading Comps
Modeling Exam. It provides over 100 practice questions and solutions covering valuation concepts,
multiples, financial statement adjustments, and industry-specific considerations. Each question
includes step-by-step explanations to help learners understand the reasoning and methodology behind
correct answers.
,Practice Questions with Detailed Solutions
Q1. In trading comps analysis, which multiple is most commonly used to compare firms across
industries?
A. Price-to-Book (P/B)
B. EV/EBITDA
C. Dividend Yield
D. Price-to-Sales (P/S)
Correct Answer: B
Rationale: EV/EBITDA is the most widely used multiple because it normalizes for differences in capital
structure, taxes, and depreciation policies, allowing for more meaningful cross-company comparisons.
P/B and P/S may be useful in certain industries, but are less universally applicable. Dividend yield is not
a primary trading comps metric.
Q2. In trading comps analysis, which multiple is most commonly used to compare firms across
industries?
A. Price-to-Book (P/B)
B. EV/EBITDA
C. Dividend Yield
D. Price-to-Sales (P/S)
Correct Answer: B
Rationale: EV/EBITDA is the most widely used multiple because it normalizes for differences in capital
structure, taxes, and depreciation policies, allowing for more meaningful cross-company comparisons.
P/B and P/S may be useful in certain industries, but are less universally applicable. Dividend yield is not
a primary trading comps metric.
Q3. In trading comps analysis, which multiple is most commonly used to compare firms across
industries?
A. Price-to-Book (P/B)
B. EV/EBITDA
C. Dividend Yield
D. Price-to-Sales (P/S)
Correct Answer: B
Rationale: EV/EBITDA is the most widely used multiple because it normalizes for differences in capital
structure, taxes, and depreciation policies, allowing for more meaningful cross-company comparisons.
P/B and P/S may be useful in certain industries, but are less universally applicable. Dividend yield is not
a primary trading comps metric.
Q4. In trading comps analysis, which multiple is most commonly used to compare firms across
industries?
A. Price-to-Book (P/B)
B. EV/EBITDA
C. Dividend Yield
D. Price-to-Sales (P/S)
Correct Answer: B
Rationale: EV/EBITDA is the most widely used multiple because it normalizes for differences in capital
structure, taxes, and depreciation policies, allowing for more meaningful cross-company comparisons.
, P/B and P/S may be useful in certain industries, but are less universally applicable. Dividend yield is not
a primary trading comps metric.
Q5. In trading comps analysis, which multiple is most commonly used to compare firms across
industries?
A. Price-to-Book (P/B)
B. EV/EBITDA
C. Dividend Yield
D. Price-to-Sales (P/S)
Correct Answer: B
Rationale: EV/EBITDA is the most widely used multiple because it normalizes for differences in capital
structure, taxes, and depreciation policies, allowing for more meaningful cross-company comparisons.
P/B and P/S may be useful in certain industries, but are less universally applicable. Dividend yield is not
a primary trading comps metric.
Q6. In trading comps analysis, which multiple is most commonly used to compare firms across
industries?
A. Price-to-Book (P/B)
B. EV/EBITDA
C. Dividend Yield
D. Price-to-Sales (P/S)
Correct Answer: B
Rationale: EV/EBITDA is the most widely used multiple because it normalizes for differences in capital
structure, taxes, and depreciation policies, allowing for more meaningful cross-company comparisons.
P/B and P/S may be useful in certain industries, but are less universally applicable. Dividend yield is not
a primary trading comps metric.
Q7. In trading comps analysis, which multiple is most commonly used to compare firms across
industries?
A. Price-to-Book (P/B)
B. EV/EBITDA
C. Dividend Yield
D. Price-to-Sales (P/S)
Correct Answer: B
Rationale: EV/EBITDA is the most widely used multiple because it normalizes for differences in capital
structure, taxes, and depreciation policies, allowing for more meaningful cross-company comparisons.
P/B and P/S may be useful in certain industries, but are less universally applicable. Dividend yield is not
a primary trading comps metric.
Q8. In trading comps analysis, which multiple is most commonly used to compare firms across
industries?
A. Price-to-Book (P/B)
B. EV/EBITDA
C. Dividend Yield
D. Price-to-Sales (P/S)
Correct Answer: B
Rationale: EV/EBITDA is the most widely used multiple because it normalizes for differences in capital
