In the recent years, steel sheet CFS shear wall has been used as a ductile lateral load bearing system for light steel frames. In this study, lateral behavior of this shear wall system is evaluated by finite element modelling of the frame, steel sheet and their connections. The lateral response of the reference wall has been compared to the available experimental data to validate the model. The extended models includes a wide range of the wall parameters such as wall height, steel sheet thickness, spacing of screws, and thickness of the frame members. Also, the influence of these properties of the walls on seismic response modification factor (R) have been investigated. An equal energy concept considering post yielding energy absorption capacity is utilized to evaluate R factor and compare with those calculated according to Newmark and Hall method. This study also aims to realize the failure modes of the steel sheet CFS shear walls and suggest the methods to achieve an appropriate seismic performance. At the end, calculated R factors is compared to those prescribed values in the relevant codes.