Company value: why equity alone may not suffice
Proposed valuation for untraded shareholdings would combine balance-sheet data and earning capacity.
Based on the supplied draft. The rules described have not been verified as effective law; the final provisions may change.
Weighted value under Annex I
The main Annex I rule would weight equity by one third and earnings value by two thirds. Earnings value would use the specified average of after-tax results over the last three completed financial years and a 15% capitalisation rate. The full formula and exceptions must be applied together.
Hidden reserves and expert conditions
For equity above HUF 500 million, Annex I would require specified hidden-reserve adjustments. Section 12(4)–(7) provides an expert route with strict independence, revenue and methodological conditions. A general business appraisal would not automatically be treated as qualifying.
Preparing the evidence
Company property, investments, holding relationships and contractual rights may matter alongside financial statements. Selection of an evaluator would depend on the task and the draft’s conditions.
Frequently asked questions
Would company equity alone suffice?
Not in every case. The main Annex I rule would combine equity and earnings value, with exceptions for holding and newly established companies, among others.
Could any evaluator carry out the special expert valuation?
No. Section 12(4)–(7) specifies independence, revenue and methodological requirements. Involving a qualifying independent evaluator must be discussed separately where needed.
Open draft (Hungarian)