ESO Toolkit 1.1
Real Consulting offers a range of software which allows clients to create their own valuation models based on the specific situation of each business.
Our software will allow your company to calculate its own risk options, saving time and money! More importantly, doing it right.
Employee Stock Options Valuation Toolkit 1.1
Learn how a FAS 123 preferred customised binomial lattice is calculated and how it compares to the naïve Black-Scholes. The software can also be used to value ESO under other accounting standards such as IFRS2 and HKFRS2. The software creator is an advisor to FASB, a professor and consultant in financial analytics, and the software was used by FASB to create the valuation examples in FAS 123. See how by considering employee suboptimal exercise behaviour, forfeiture rates, blackout periods, vesting, marketability discounts, and changing inputs over time (volatility, dividend yield, risk-free rate, forfeiture rate, and suboptimal behaviour exercise multiple) can more accurately reflect reality, reduce expenses, conform to FAS 123 requirements, and pass an audit. See how ESO Valuations are done correctly!
Software and Consulting Highlights
- Our software is developed by Dr. Johnathan Mun, advisor to FASB on FAS 123.
- Use the same software FASB uses! Software was used by FASB to create the valuation example in the 2004 FAS 123 (Appendix A87).
- Our software can also be used for valuating ESO under other accounting standards such as IFRS2 and HKFRS2.
- Our software models both closed-form models (Black-Scholes) as well as different binomial and trinomial lattices.
- Theories are all covered extensively in the author's books and articles - use the published books/research to successfully defend an audit
- All equations are visible within Excel when creating your own option valuation models.
- Costs a lot less than expensive consultants... have the ability to check their work instead!
- Have the ability to compare the naïve Black-Scholes versus more sophisticated binomial lattice results (FASB's preferred method).
Algorithms used to solve the options
- American Closed-Form Models
- Binomial and Trinomial Lattices
- European Black-Scholes
- CREATE YOUR OWN CUSTOM OPTIONS
Types of Employee Stock Options Solved
- Blackout Periods
- Changing Forfeiture Rates
- Changing Risk-free Rates
- Changing Volatilities
- Forfeiture Rates (Pre- and Post-vesting)
- Stock Price Barrier Requirements
- Suboptimal Exercise Behaviour Multiple
- Vesting Periods
- All Other Exotic Variables