WALL STREET PREP
TRANSACTION COMPS MODELING EXAM PRACTICE
2026/2027 EDITION
This is an independent practice exam for educational study; it is not an official Wall Street Prep certification examination.
Section Overview
This comprehensive practice exam contains 50 questions across five sections, aligned with the Wall Street Prep
Transaction Comps Modeling curriculum, current investment banking valuation methodologies, and evidence-based
financial modeling practices for 2026/2027.
Sec Topic Qs
1 Transaction Comps Process - Deal Screening, Comparability, Data Sourcing 10
2 Transaction Multiples - EV/EBITDA, EV/Revenue, P/E, Industry-Specific 12
3 Financial Adjustments - Non-Recurring Items, Synergies, Purchase Accounting 10
4 Valuation Analysis - Implied Range, Sensitivity, Football Field 10
5 Case Studies - Integrated M&A and Comps Analysis 8
TOTAL 50
Instructions
For each question, select the single best answer. Use the answer key at the end of the exam to check your work. Each
item includes a brief rationale explaining the correct response.
Answer Key Distribution: 13 A · 13 B · 12 C · 12 D
, Section 1: Transaction Comps Process - Deal Screening, Comparability, and Data
Sourcing
Q1: The primary purpose of a transaction comps (precedent transactions) analysis is to:
A. Value a company based on its own future cash flows
B. Compare a company to its publicly traded peers
C. Value a company based on what acquirers have paid for comparable companies in M&A; deals [CORRECT]
D. Determine a company's liquidation value
Correct Answer: C
Rationale: Transaction comps value a target based on prices paid in comparable M&A; transactions. The other options
describe other valuation methods.
Q2: When screening for comparable precedent transactions, which factor is most important?
A. The transaction's announcement year only
B. Relevance of the target's industry, geography, and business model [CORRECT]
C. The deal's fee size
D. The advisors' names
Correct Answer: B
Rationale: Relevant targets match industry, geography, and business model. Announcement year, fees, and advisors are less
relevant to comparability.
Q3: Which of the following is a key source of transaction data?
A. Personal opinions
B. News gossip
C. SEC filings such as the S-4 and 10-K, and deal databases like Capital IQ and Bloomberg [CORRECT]
D. Unverified rumors
Correct Answer: C
Rationale: Transaction data come from SEC filings (e.g., S-4, 10-K) and databases like Capital IQ and Bloomberg. The other
options are not reliable sources.
Q4: A 'precedent transaction' refers to:
A. A company's own historical stock price
B. A prior M&A; deal involving a comparable company, used as a valuation reference [CORRECT]
C. A bond issuance
D. A dividend payment
Correct Answer: B
Rationale: A precedent transaction is a past M&A; deal with a comparable company used as a valuation reference. The other
options are not precedent transactions.
Q5: Which factor should be evaluated when determining whether a transaction is comparable?
A. The color of the logo
B. The size and scale of the target relative to the subject [CORRECT]
C. The advisors' alma maters
D. The announcement press release tone
Correct Answer: B
Rationale: Size and scale are key comparability factors. The other options are not relevant to comparability.
Q6: Transaction timing matters in comps because:
A. Older deals are always better
B. Market conditions and deal structures change over time, affecting multiples [CORRECT]
C. Timing never matters
D. Only the year of the deal matters
Correct Answer: B
Wall Street Prep - Transaction Comps Modeling Exam - 2026/2027 Page 2
TRANSACTION COMPS MODELING EXAM PRACTICE
2026/2027 EDITION
This is an independent practice exam for educational study; it is not an official Wall Street Prep certification examination.
Section Overview
This comprehensive practice exam contains 50 questions across five sections, aligned with the Wall Street Prep
Transaction Comps Modeling curriculum, current investment banking valuation methodologies, and evidence-based
financial modeling practices for 2026/2027.
Sec Topic Qs
1 Transaction Comps Process - Deal Screening, Comparability, Data Sourcing 10
2 Transaction Multiples - EV/EBITDA, EV/Revenue, P/E, Industry-Specific 12
3 Financial Adjustments - Non-Recurring Items, Synergies, Purchase Accounting 10
4 Valuation Analysis - Implied Range, Sensitivity, Football Field 10
5 Case Studies - Integrated M&A and Comps Analysis 8
TOTAL 50
Instructions
For each question, select the single best answer. Use the answer key at the end of the exam to check your work. Each
item includes a brief rationale explaining the correct response.
Answer Key Distribution: 13 A · 13 B · 12 C · 12 D
, Section 1: Transaction Comps Process - Deal Screening, Comparability, and Data
Sourcing
Q1: The primary purpose of a transaction comps (precedent transactions) analysis is to:
A. Value a company based on its own future cash flows
B. Compare a company to its publicly traded peers
C. Value a company based on what acquirers have paid for comparable companies in M&A; deals [CORRECT]
D. Determine a company's liquidation value
Correct Answer: C
Rationale: Transaction comps value a target based on prices paid in comparable M&A; transactions. The other options
describe other valuation methods.
Q2: When screening for comparable precedent transactions, which factor is most important?
A. The transaction's announcement year only
B. Relevance of the target's industry, geography, and business model [CORRECT]
C. The deal's fee size
D. The advisors' names
Correct Answer: B
Rationale: Relevant targets match industry, geography, and business model. Announcement year, fees, and advisors are less
relevant to comparability.
Q3: Which of the following is a key source of transaction data?
A. Personal opinions
B. News gossip
C. SEC filings such as the S-4 and 10-K, and deal databases like Capital IQ and Bloomberg [CORRECT]
D. Unverified rumors
Correct Answer: C
Rationale: Transaction data come from SEC filings (e.g., S-4, 10-K) and databases like Capital IQ and Bloomberg. The other
options are not reliable sources.
Q4: A 'precedent transaction' refers to:
A. A company's own historical stock price
B. A prior M&A; deal involving a comparable company, used as a valuation reference [CORRECT]
C. A bond issuance
D. A dividend payment
Correct Answer: B
Rationale: A precedent transaction is a past M&A; deal with a comparable company used as a valuation reference. The other
options are not precedent transactions.
Q5: Which factor should be evaluated when determining whether a transaction is comparable?
A. The color of the logo
B. The size and scale of the target relative to the subject [CORRECT]
C. The advisors' alma maters
D. The announcement press release tone
Correct Answer: B
Rationale: Size and scale are key comparability factors. The other options are not relevant to comparability.
Q6: Transaction timing matters in comps because:
A. Older deals are always better
B. Market conditions and deal structures change over time, affecting multiples [CORRECT]
C. Timing never matters
D. Only the year of the deal matters
Correct Answer: B
Wall Street Prep - Transaction Comps Modeling Exam - 2026/2027 Page 2
