Trading Comps Modeling Exam – Wall Street Prep 2026 | Full Valuation Model Answers

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Trading Comps Modeling Exam Wall
Street Prep 2026




2026 2027 GRADED A+

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Section 1 — Fundamentals of Trading Comps (1–10)
1. Comparable company analysis (trading comps) is used to estimate a company’s value based
on:
A) Its historical financial statements
B) Real estate assets
C) Metrics of similar publicly traded peers
D) Discounted cash flows only
Answer: C

2. A key output of trading comps is:
A) Internal rate of return
B) Relative valuation multiples
C) Tax schedules
D) Fixed asset depreciation
Answer: B

3. When selecting trading comps, you generally choose companies with:
A) Similar capital structure and size
B) Identical stock prices
C) Different industries
D) No comparable metrics
Answer: A

4. Enterprise Value (EV) includes:
A) Equity value only
B) Equity value + debt − cash
C) Net income
D) Dividends
Answer: B

5. Equity Value is also referred to as:
A) Market Cap
B) Book Value
C) Debt Value
D) EBITDA
Answer: A

6. The most commonly used profit metric in trading comps is:
A) Revenue
B) Gross Margin
C) EBITDA




2026 2027 GRADED A+