Forensic & Valuation Services Conference 2018

FVC1851 - Valuation of Employee Stock Options, Market Condition, and Performance Based Options

Nov 7, 2018 7:30am ‐ Nov 7, 2018 8:45am


Description

Introduction to valuation of employee stock compensation awards. Service, market, and performance conditions and their impact the fair value. Deeply out-of-the-money options. Size and leverage impact on the volatility. Introduction to Black-Scholes, binomial model, and Monte Carlo simulations.

Learning Outcomes:

  • List and explain the different types of options
  • Identify the methodologies used to value options
  • Define the concept of "moneyness" and how it impacts the selection of the valuation methodology
  • Identify significant assumptions used in the valuation of options
  • Recognize the ASC 718 and SAB 14 requirements for estimating the expected volatility for public companies
  • Recognize the AICPA recommendations for estimating the expected volatility for privately-held companies

Speaker(s):

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