Stuttgart method

Stuttgart method

The Stuttgart method rated shares of joint stock companies and limited liability companies. The free Finanzkalkulator makes especially useful if inheritance or corporate taxes should be calculated.

Stuttgart method Download: Finanzkalkulator for estimating monetary values

Here, the Stuttgart method mainly takes into account the non-listed shares of the companies. The freeware helps but also in cases where the value of the company can not be derived from sales. In this case The computer supports the user in estimating the monetary values. Here, the Stuttgart procedure, of course, strictly within the legal requirements.

Used primarily for the inheritance and gift taxes

The method as Stuttgarter Method to estimate the fair market value of shares in non-listed companies was mostly used for inheritance and gift tax, but now superseded by other methods. For use the method set 2 came to § 12. 2 ErbStG in conjunction with § 11, para. 2 to FL at the transition of units of a non-listed corporation by gift or inheritance.

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Method has now been replaced by other methods

Application found the valuation method not only in the inheritance tax, but also in contracts or limited liability statutes. The Federal Constitutional court has decided that the application of the Stuttgarter method in the field of inheritance is not compatible with the basic law. At the beginning of 2009 the evaluation process was therefore abolished inheritance tax reform law and a new method was used.

Net asset value and earnings value of a company

In order to obtain an approximate orientation assets types and levels of the calculator to the traditional Stuttgart method can of course continue to be used. Of the Value of a company is obtained here from the sum of net asset value and income capitalization. It should primarily serve tax purposes and less an adequate valuation in individual cases.

Stuttgart method calculator saves complicated formula calculations

The calculation is performed by the Stuttgart method Download in several steps. As Asset (V) a corporation is considered the difference between assets and liabilities. This is derived from the last balance sheet of the company. Now comes the Income percentage (E) the company used as the arithmetic average returns on equity over the past three financial years. This value is also expressed as a percentage. Finally, it comes with the formula X = 0.68 (V + 5E) for calculating the Common value (X) a unit in the corporation as a percentage of the nominal capital. More financial calculators are available in our software catalog.

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