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. Which empirical data source is most commonly cited for control premiums in acquisitions of publicly traded companies? → Mergerstat/BVR Control Premium Study
2. 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
3. Which economic indicator reflects the general price level changes in an economy? → Consumer Price Index (CPI)
4. The Multi-Period Excess Earnings Method (MPEEM) is primarily used to value: → A primary intangible asset driving business value, such as customer relationships
5. Which of the following is an analytical model used to estimate DLOM based on option pricing theory? → The Chaffe put option model
6. 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
7. A minority interest discount is applied primarily because minority shareholders lack: → The ability to control business decisions such as distributions and asset sales
8. The concept of 'economic damages' in IP infringement cases most often encompasses: → Lost profits, reasonable royalty, or unjust enrichment of the infringer
9. 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
10. What is a red flag in financial analysis that might affect a business valuation? → Inconsistent revenue recognition
11. What is the premise of value concept in business valuation? → Whether the business is valued as a going concern or in liquidation
12. In industry life-cycle analysis, the 'maturity' stage is typically characterized by what? → Slowing growth, market saturation, and margin pressure
13. Which of the following constitutes a conflict of interest in valuation practice? → Having financial interest in the subject company
14. The company-specific risk premium (CSRP) in the build-up method is intended to capture: → Risks unique to the subject company not already reflected in other premium components
15. Why is it important for valuation analysts to follow NACVA's Professional Standards? → To ensure ethical and professional practice
16. Under the Daubert standard, a judge evaluating a valuation expert's methodology may consider: → Whether the methodology has been tested, peer-reviewed, and has a known error rate
17. Under Revenue Ruling 59-60, which of the following is identified as one of the eight factors to consider when valuing closely held stock? → The economic outlook in general and the condition and outlook for the specific industry
18. An increase in the subject company's long-term sustainable growth rate (g) in the Gordon Growth Model will: → Decrease the capitalization rate and increase value
19. Which method is most commonly used to quantify the Discount for Lack of Marketability using empirical data? → Restricted stock studies and pre-IPO studies
20. In practice, the total cost of equity for a small private company using the build-up method is most likely in the range of: → 15%–25% or higher, due to size and company-specific risk premiums
21. The capitalization rate in a single-period income capitalization model is calculated as: → Discount rate minus long-term sustainable growth rate
22. When is the asset-based approach most appropriate for business valuation? → For asset-holding companies, real estate entities, or businesses being liquidated
23. Which financial statement shows a company's financial position at a specific point in time? → Balance sheet
24. What is the role of objectivity in business valuation? → To provide an unbiased assessment
25. In a litigation valuation report, the concept of 'trier of fact' refers to: → The judge or jury who will weigh the evidence and decide the case
26. A non-recurring lawsuit settlement expense appears in the income statement. In normalization, how should an analyst treat it? → Remove it as a non-recurring item
27. Which document type under NACVA standards summarizes results with limited disclosure and is appropriate for a Calculation Engagement? → Calculation Report
28. A higher degree of financial leverage in a company's capital structure generally results in: → A higher cost of equity due to increased financial risk to shareholders
29. What is the adjusted net asset method? → Restating all assets and liabilities to fair market value, then calculating the difference
30. Which section of a CVA report typically addresses the analyst's independence and conflicts of interest? → Analyst's certification