409A vs fair market value: 409A Valuation Standards
The 409A Valuation Standards carries 3 published figures read from 3 sources' own pages, under different breakdowns, so no one range is stated, read 11 November 2026.
4 of the 16 named sources read in full publish a figure; 12 publish none, read 11 November 2026.
By attribute
| Breakdown | Median | Range | Sources |
|---|---|---|---|
| attribute how long it holds | 12 month | 12 to 12 month | 2 |
| attribute who may sign it | 7.5 year | 5 to 10 year | 2 |
| attribute consequence of getting it wrong | 20 % (one figure) | one figure, no range | 1 |
Every figure, with its source
One row per published figure: the figure as the source's own page publishes it, the page, and the day it was read. A figure that is not on a page we read is not on this one.
| Source | Figure | Breakdown | Read |
|---|---|---|---|
| 26 CFR 1.409A-1 (eCFR), including (b)(5)(iv) valuation of stock | 30 day | 2026-11-07 | |
| IRS Internal Revenue Bulletin 2007-19 (409A final regulations) | 30 day | 2026-11-07 | |
| Carta: what is a 409A valuation | 20 % | consequence of getting it wrong | 2026-11-11 |
| 26 CFR 1.409A-1 (eCFR), including (b)(5)(iv) valuation of stock | 12 month | how long it holds | 2026-11-07 |
| Qapita: what is a 409A valuation | 12 month | how long it holds | 2026-11-07 |
| Carta: what is a 409A valuation | 10 year | 2026-11-11 | |
| Qapita: what is a 409A valuation | 10 year | who may sign it | 2026-11-07 |
| 26 CFR 1.409A-1 (eCFR), including (b)(5)(iv) valuation of stock | 5 year | who may sign it | 2026-11-07 |
The sentence each figure was read from (8)
- 26 CFR 1.409A-1 (eCFR), including (b)(5)(iv) valuation of stock, read 2026-11-07:
(2) Using the arithmetic mean of such market prices on trading days during a specified period designated before the beginning of such specified period, where such specified period is not longer than 30 days and ends no later than 60 days after the transaction; or
- IRS Internal Revenue Bulletin 2007-19 (409A final regulations), read 2026-11-07:
For example, if a corporation decided to grant a stock option on July 1, and it could set the exercise price using an average selling price for any period falling within the prior 30 days without having had a prior commitment to a specific averaging period, the corporation could simply look for the lowest price that occurred during the prior June.
- Carta: what is a 409A valuation, read 2026-11-11:
The penalties can be substantial for employees and shareholders: All deferred compensation from the current and preceding years becomes taxable immediately Accrued interest on the revised taxable amount An additional tax of 20 percent on all deferred compensation Most startups aren't likely to be audited by the IRS.
- 26 CFR 1.409A-1 (eCFR), including (b)(5)(iv) valuation of stock, read 2026-11-07:
rporation (for example, the resolution of material litigation or the issuance of a patent) or the value was calculated with respect to a date that is more than 12 months earlier than the date for which the valuation is being used.
- Qapita: what is a 409A valuation, read 2026-11-07:
However, for startups (companies operating for less than ten years), a "qualified individual" can conduct the valuation, as long as it's done at a time when the company doesn't foresee a change in control or public offering of its stock. The valuation cannot be older than 12 months.
- Carta: what is a 409A valuation, read 2026-11-11:
Illiquid startup presumption: Available to companies less than 10 years old with no publicly traded shares and no expected IPO within 180 days or acquisition within 90 days.
- Qapita: what is a 409A valuation, read 2026-11-07:
However, for startups (companies operating for less than ten years), a "qualified individual" can conduct the valuation, as long as it's done at a time when the company doesn't foresee a change in control or public offering of its stock.
- 26 CFR 1.409A-1 (eCFR), including (b)(5)(iv) valuation of stock, read 2026-11-07:
For this purpose, significant experience generally means at least five years of relevant experience in business valuation or appraisal, financial accounting, investment banking, private equity, secured lending, or other comparable experience in the line of business or industry in which the service recipient operates.
Read in full, publishes no figure
12 named sources were read in full on the dates shown and print no usable figure. They are counted, never filled in.
- IRS: valuation of assets, read 2026-09-12: read in full and no accepted figure on the page
- IRS Publication 561, Determining the Value of Donated Property, read 2026-09-12: every candidate on the page was refused
- SEC EDGAR: ASC 820-10 fair value measurement as applied in a filing, read 2026-09-12: every candidate on the page was refused
- AICPA: valuation of privately held company equity securities issued as compensation, read 2026-09-12: read in full and no accepted figure on the page
- Cornell LII: 26 U.S. Code § 409A, read 2026-09-19: every candidate on the page was refused
- Mantle: 409A valuation vs fair market value, read 2026-09-12: every candidate on the page was refused
- Shields & Company: fair market value vs post-money value, read 2026-10-10: every candidate on the page was refused
- Sofer Advisors: 409A vs 8-K valuation, read 2026-11-07: every candidate on the page was refused
- Eton Venture Services: ASC 820 guide, read 2026-10-10: every candidate on the page was refused
- Redwood Valuation: ASC 820 portfolio valuation, read 2026-11-07: every candidate on the page was refused
- Pulley: what is ASC 820, read 2026-09-19: read in full and no accepted figure on the page
- Andreessen Horowitz: 16 things to know about the 409A valuation, read 2026-09-12: every candidate on the page was refused
Methodology
Every row is a verbatim sentence read from the named source's own page through our fetch service on the date shown, hash-pinned to the stored read (the sha of the page's visible text; the raw page is mirrored to R2).
4 of the 16 named sources that could be read published a usable figure; 12 published none and are recorded as not published, never filled in; 0 could not be read (blocked, dead or unreachable) and count nowhere.
The headline figures (median, minimum, maximum, quartiles) are over ONE figure per source in year (a source's median where its page yielded several accepted sentences), so N counts sources, never sentences; 128 candidate sentence(s) were refused by a reviewer with the reason recorded.
The fuller derivation this dataset is chartered to grow into (not yet what the figures above are; they are each source's own published figure as read): one row per valuation standard (409A fair market value under Treas.
Reg.
1.409A-1(b)(5)(iv), IRS fair market value under Rev.
Rul.
59-60 as the regulations import it, ASC 820 fair value, the preferred round's post-money price) per attribute: who sets it, what it measures, which share class, who may sign it, how long it holds, and what the consequence of getting it wrong is - each quoted verbatim from the authority with its effective date.
The derivation is the SPREAD between them on the same company: the ratio of 409A common fair market value to the last preferred price, read off the firms that publish it, beside the regulation's own words about why the two differ - a comparison the authorities never make and the firms make only one at a time.
128 candidate sentences on these pages were refused by a reviewer; each refusal and its reason is recorded in the review ledger.
Sources (16)
- 26 CFR 1.409A-1 (eCFR), including (b)(5)(iv) valuation of stock(the publisher's own terms; quoted for reporting and comment)
- IRS Internal Revenue Bulletin 2007-19 (409A final regulations)(the publisher's own terms; quoted for reporting and comment)
- IRS: valuation of assets(the publisher's own terms; quoted for reporting and comment)
- IRS Publication 561, Determining the Value of Donated Property(the publisher's own terms; quoted for reporting and comment)
- SEC EDGAR: ASC 820-10 fair value measurement as applied in a filing(the publisher's own terms; quoted for reporting and comment)
- AICPA: valuation of privately held company equity securities issued as compensation(the publisher's own terms; quoted for reporting and comment)
- Cornell LII: 26 U.S. Code § 409A(the publisher's own terms; quoted for reporting and comment)
- Carta: what is a 409A valuation(the publisher's own terms; quoted for reporting and comment)
- Mantle: 409A valuation vs fair market value(the publisher's own terms; quoted for reporting and comment)
- Shields & Company: fair market value vs post-money value(the publisher's own terms; quoted for reporting and comment)
- Sofer Advisors: 409A vs 8-K valuation(the publisher's own terms; quoted for reporting and comment)
- Qapita: what is a 409A valuation(the publisher's own terms; quoted for reporting and comment)
- Eton Venture Services: ASC 820 guide(the publisher's own terms; quoted for reporting and comment)
- Redwood Valuation: ASC 820 portfolio valuation(the publisher's own terms; quoted for reporting and comment)
- Pulley: what is ASC 820(the publisher's own terms; quoted for reporting and comment)
- Andreessen Horowitz: 16 things to know about the 409A valuation(the publisher's own terms; quoted for reporting and comment)
Cite or embed this figure
The 409A Valuation Standards carries 3 published figures read from 3 sources' own pages, under different breakdowns, so no one range is stated, read 11 November 2026.
4 of the 16 named sources read in full publish a figure; 12 publish none, read 11 November 2026.
409A Valuation Standards, attribute how long it holds: median 12 month across 2 sources, read 11 November 2026.
409A Valuation Standards, attribute who may sign it: median 7.50 year across 2 sources, read 11 November 2026.
409A Valuation Standards, attribute consequence of getting it wrong: median 20 percent across 1 source, read 11 November 2026.
Cite as: "409aproviders.com 409A Valuation Standards", updated 2026-11-11, https://409aproviders.com/datasets/409a-valuation-standards/.
Download the CSV (8 rows, computed 2026-11-11)
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Questions this data answers
How does the 409A fair market value differ from the other valuations of the same shares - the preferred round's post-money price, ASC 820 fair value, and an IRS fair market value for gift, estate or donation - and which authority sets each?
The 409A Valuation Standards carries 3 published figures read from 3 sources' own pages, under different breakdowns, so no one range is stated, read 11 November 2026.
Where do the figures in the 409A Valuation Standards come from?
Every figure is quoted from its source's own page and dated (last read 11 Nov 2026). 16 named sources were read and 4 publish a figure; the 12 that publish none are recorded as not published, never estimated.