Certified Valuation Analyst Cheat Sheet 2026

The 30 highest-yield Certified Valuation Analyst facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. When local economic conditions diverge from national trends, the analyst should: → Weight regional data relevant to the subject company's market
2. In a DCF analysis, the terminal value represents: → The value of cash flows beyond the explicit forecast period
3. Which empirical data source is most commonly cited for control premiums in acquisitions of publicly traded companies? → Mergerstat/BVR Control Premium Study
4. In valuing a real estate holding company (FLP), trapped-in capital gains are typically treated how? → As a downward adjustment to net asset value
5. Which premise of value assumes the business will continue operating into the future? → Going concern
6. Which adjustment addresses related-party transactions priced below market? → Restate the transaction to arm's-length market terms
7. Under NACVA standards, which approach derives value from the present worth of expected future economic benefits? → Income approach
8. 'Investment value' differs from fair market value because it reflects what? → The value to a specific buyer including their unique synergies
9. Why might an analyst select a multiple at the lower end of the guideline range for a subject company? → The subject is smaller and riskier than the guidelines
10. When a company is being valued on a liquidation basis, the asset approach should reflect: → Net proceeds after disposal costs and liabilities
11. The equity risk premium (ERP) used in CAPM and the build-up method represents: → The excess return investors expect above the risk-free rate for investing in equities
12. Which economic indicator reflects the general price level changes in an economy? → Consumer Price Index (CPI)
13. Which margin measures profitability after all operating expenses but before interest and taxes? → Operating margin (EBIT margin)
14. Under fair value for financial reporting (ASC 820), the value is based on which type of market participant? → A market participant in the asset's principal or most advantageous market
15. A valuation analyst uses an MVIC/EBITDA multiple. What does MVIC represent? → Market value of invested capital (debt plus equity)
16. A control premium is the inverse counterpart of which discount? → Discount for lack of control
17. When applying a selected multiple to the subject company, the analyst should apply it to: → A normalized, comparable financial metric of the subject
18. Which standard of value assumes a hypothetical willing buyer and willing seller, neither under compulsion and both reasonably informed? → Fair market value
19. A sensitivity analysis in a DCF valuation is performed to: → Show how value changes with variations in key assumptions
20. When the subject company's performance has historically tracked a specific economic variable, the analyst should: → Incorporate the relationship into the projection assumptions
21. The Multi-Period Excess Earnings Method (MPEEM) is primarily used to value: → A primary intangible asset driving business value, such as customer relationships
22. Which of the following is an analytical model used to estimate DLOM based on option pricing theory? → The Chaffe put option model
23. In the build-up method for estimating cost of equity, which component is added to the risk-free rate to account for the size of the subject company? → Small company risk premium
24. A minority interest discount is applied primarily because minority shareholders lack: → The ability to control business decisions such as distributions and asset sales
25. The company-specific risk premium accounts for: → Unsystematic risks unique to the subject company
26. The concept of 'economic damages' in IP infringement cases most often encompasses: → Lost profits, reasonable royalty, or unjust enrichment of the infringer
27. When converting an after-tax discount rate to value pre-tax cash flows, an analyst must: → Ensure the rate and cash flow basis are consistent
28. Under the purchase price allocation (PPA) process in business combinations, intangible assets are recognized separately from goodwill when they: → Arise from contractual or legal rights, or are separable from the business
29. What is a red flag in financial analysis that might affect a business valuation? → Inconsistent revenue recognition
30. What is the premise of value concept in business valuation? → Whether the business is valued as a going concern or in liquidation