Stock-Based Compensation Valuation
Stock-based compensation is a key component of modern reward structures — aligning employee incentives with shareholder value. However, valuing these instruments correctly is complex, requiring an understanding of option pricing models, accounting standards, and fair-value hierarchy.
At Synpact Consulting, we deliver independent, defensible valuations of employee share-based payment plans — covering ESOPs, RSUs, SARs, and performance-linked equity awards under IFRS 2, ASC 718, and IND AS 102. Our valuations combine statistical rigor, transparent documentation, and compliance with global accounting frameworks.
Why Choose Synpact for Stock-Based Compensation Valuation
- Standard Compliance: IFRS 2 / ASC 718 / IND AS 102 compliant valuation and expense reporting.
- Audit-Ready Documentation: Full model files, working papers, and reconciliations ready for review.
- Advanced Modeling Expertise: Black-Scholes, Binomial, Monte Carlo, and lattice-based models.
- Customized Approach: Tailored to your vesting schedules, performance conditions, and market inputs.
- Cross-Functional Team: Valuation analysts, CPAs, and data modelers collaborate for accuracy.
- Fast Turnaround: Typical engagements completed within 5–10 business days.
- Regulatory Awareness: Experience handling Big 4 audit reviews and public-company reporting.
Our Stock-Based Compensation Valuation Services
ESOP / Stock Option Valuation
Fair-value estimation using Black-Scholes, Binomial, or Monte Carlo models.
Volatility, risk-free rate, dividend yield, and expected life analysis.
Expense recognition schedule for financial reporting.
RSU / Performance Share Valuation
Fair-value of time- and performance-based RSUs.
Market condition modeling (e.g., TSR plans) using Monte Carlo simulations.
Expense allocation and modification accounting.
SAR / Phantom Share Valuation
Fair-value measurement of cash-settled plans under IFRS 2 / IND AS 102.
Liability re-measurement at each reporting date.
Expense Recognition & Disclosure Support
Amortization schedules and journal entry support.
IFRS / GAAP note disclosures for share-based payment expense.
Valuation Model Audit & Review
Independent review of in-house or third-party models.
Sensitivity analysis, back-testing, and assumption benchmarking.
Process & Workflow
- Planning & Data Collection – Review plan documents, grant data, vesting terms, historical volatility.
- Model Selection & Assumption Setting – Choose valuation model (Black-Scholes / Binomial / Monte Carlo), derive inputs.
- Fair-Value Computation – Run simulations and valuation calculations.
- Expense Amortization & Disclosure – Prepare expense tables, footnotes, and entries.
- Audit Review & Delivery – Deliver audit-ready report and support materials.
Industries & Use Cases
- Technology & Startups
- Financial Services & FinTech
- Manufacturing & Industrial
- Pharma & Healthcare
- Retail & Consumer Goods
- Annual or quarterly ESOP valuations
- Pre-IPO stock-based reporting readiness
- Fundraising / 409A equity valuations
- Audit defense and Big 4 review support
- Compensation plan modification analysis
Frequently Asked Questions (FAQs)
Q: Which models do you use for ESOP valuation?
A: We use Black-Scholes, Binomial tree, and Monte Carlo models depending on plan complexity.
Q: Do you support IFRS 2 and US GAAP (ASC 718)?
A: Yes — our models and reports align with both frameworks, plus IND AS 102 for India.
Q: Can you help with expense recognition and accounting entries?
A: Absolutely — we prepare amortization schedules, journal entries, and disclosure tables.
Q: What information do you need to start the valuation?
A: Plan document, grant details, vesting schedule, historical stock price data, and volatility inputs.
Q: How do you ensure audit acceptance?
A: We document every assumption and benchmark, provide sensitivity tests, and align our methods to auditor expectations.
Call to Action
Plan to issue ESOPs or evaluate existing grants? Let Synpact Consulting deliver accurate, audit-defensible valuations and expense models for your equity compensation plans. Contact info@synpactconsulting.com to schedule a consultation or request sample reports.