Stock Option Valuation

Stock options might be the oldest and most traditional form of stock-based compensation, but that doesn’t mean they’re always straightforward. Market fluctuations affect exercise and forfeiture patterns. Recipient pools, award characteristics, company circumstances, and vesting provisions can all change, rendering “plug and chug” expected term calculations useless. With a deceptively large number of moving parts, these days even plain vanilla options require significant analysis and judgment.

Modified Awards

Determine the fair value and incremental expense impact of awards modified under a variety of conditions.

Private and Newly Public Companies

Identify an appropriate ASC 718 peer group, develop compliant input assumptions, implement best-in-class volatility levering and de-levering techniques, and arrive at defensible stock option fair values.

Assumed Awards

Meet the unique challenges of ASC 805 with valuations for awards assumed in business combinations.

Plain Vanilla Options

Get clean, auditable fair values for stock options and similar instruments in any situation, whether it’s your annual grant or periodic marking-to-market.