Eliminating Outliers in Financial Data Without Cherry-Picking

Business Valuation UpdateVol. 27 No. 6
June 2021
J. Richard Claywell, CPA, ABV, ASA, CBA, CVA, ICVS, CM&AA, MAFF, CFD, ABAR
market comparables
guideline transaction method, statistics, data


The author discusses one method for determining outliers that is defensible from the allegation of cherry-picking—that is, bias in selecting data to either suit the client’s wishes or to generate a specific result for the client.