To facilitate the valuation of SMEs for inheritance tax purposes, the legislator has developed a simplified capital value calculation, known as the simplified earnings value method according to sections 199 ff. of the Valuation Act. This aims to provide taxpayers with an easy way to assess their businesses. Significant simplifications affect both the numerator and the denominator of the capital value calculation. For instance, the numerator is derived as the average annual yield from historical data. In the denominator, a flat-rate typification is applied through the specification of a risk surcharge of 4.5%. Therefore, the objective of this work is to empirically determine whether and to what extent a "correct" valuation is achieved through the simplified earnings value method.