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New 2026 Italian Valuation Principles: a reform that changes the way valuations are performed

published on 6 February 2026 | reading time approx. 4 minutes

The OIV Foundation has published the Exposure Draft of the new Italian Valuation Principles (PIV), which will come into force on 30 June 2026, marking a structural and systematic update of the previous 2015 edition. The reform introduces a more readable structure, an explicit hierarchy of requirements (classified as “must, should, can”), and a more robust and consistent approach to the valuation process as a whole.

A clearer structure for clearer principles

One of the most significant innovations concerns the clear separation between principles and commentary.

In the 2015 PIV, the two layers were combined within a single document: binding principles were presented together with preambles, examples, appendices and observations that lacked prescriptive force. This structure often generated ambiguity, making it difficult for the reader to distinguish between what was truly a “principle” and what was merely illustrative support.

The new PIV resolve this issue at the root, providing for:

an autonomous, concise and authoritative text of the principles;
a separate document dedicated to the “Rationale for the principles”, containing comments, examples and explanations of the underlying logic, which are, however, non-binding.

It is a simple formal change, the effects of which, however, are extremely significant: greater clarity, reduced risk of divergent interpretations, and a framework more closely aligned with international standards.

A new focus on previously excluded valuations

The reform significantly expands the range of situations regulated by the PIV. The 2026 edition introduces specific principles for valuation contexts that were previously left out or only marginally addressed, including:

valuation of distressed companies, a particularly relevant topic in the current economic environment, requiring more delicate forward-looking analyses and a careful assessment of going-concern assumptions.
withdrawal from limited liability companies (S.r.l.), for which the new PIV clarify that the benchmark configuration is fair market value, unless otherwise provided in the company by-laws;
valuation of financial damage, addressed through a dedicated document, complete with legal and case-law appendices, providing guidance on a valuation area which is increasingly relevant in civil and commercial proceedings.

These are issues of growing frequency and complexity in practice. Bringing them within a clear regulatory perimeter enhances operational certainty and promotes greater uniformity in application.

The hierarchy of prescriptions: a more transparent language

Another important innovation in the 2026 PIV is the introduction of a hierarchy of prescriptions, distinguishing between what:

must be done (mandatory requirement);
should be done (essential requirement, subject to justified derogation);
can be done (left to the professional’s judgement).

This structure allows the principle to be understood immediately, clarifying which aspects are indispensable and which allow room for flexibility. It is an improvement aimed at reinforcing professional responsibility, enhancing expert judgement, and enabling a better calibration of the process according to the specific case.

Strengthening of the valuation process and quality control

The reform confirms a view of valuation as a structured process rather than a mere application of formulas. In the new PIV, particular emphasis is placed on:

professional scepticism, to be exercised in the collection and critical analysis of data;
the need for a reasoned, documented and comprehensible process, allowing another expert to follow the reasoning;
the formal introduction of quality control, now an integral part of the valuation process rather than an optional choice.

The final result must not only be correct. It must also be verifiable, traceable and consistent with the available information and underlying assumptions.

Information base: completeness, relevance, transparency

The principle relating to the information base is one of the most analytical in the entire reform. Data collection cannot be partial or selective:

all reasonably obtainable information must be considered;
items potentially conflicting with the expected conclusion cannot be ignored;
the expert must justify the choice of sources, the exclusion of data, and any inability to obtain certain information.

The information base is never “neutral”. It is the result of a selection that must be explained and made understandable, as it directly affects the final credibility of the valuation.

Approaches, methods and models: an explicit distinction at last

The PIV consolidates the distinction between approaches, methods and models, a tripartition that strengthens the transparency of the process.

A method (for example, the DCF) is no longer sufficient on its own to qualify a valuation. It is necessary to clarify how the method is applied: based on which assumptions, which time horizons, which parameters, which economic choices and which consistency criteria.

In other words, simply stating the method is no longer acceptable: the model, its logic and its limitations must be clearly explained.

Conclusion

The 2026 PIV are a far-reaching reform, which will affect not only technical aspects but the very way in which valuation is conceived.

The new document structure, the broader scope of application, the hierarchy of prescriptions and the strengthening of the information-base analysis offer a framework that is more modern, clearer and more aligned with international best practices.

For valuation professionals, the new system offers an opportunity to enhance transparency, consistency and quality in their work, in an economic environment that increasingly demands rigour and interpretative skills.