Automated Fair Value Calculation

Automated Fair Value Calculation

Let our systems do the work, automate your fair value calculation for financial reporting.

Our fair value module accounts for all valuation models and types ensuring accuracy and reliability for your reporting.

Fair Value Calculation

  • Valuation Models

    Black Scholes fulfils, for most companies, the first and most fundamental building block you need as part of generating your financial disclosures, the valuation of all grants.

    Our financial reporting tool automates the Black-Scholes valuation model to calculate the fair value of our clients grants.

    Intrinsic Valuation is used for the majority of restricted and performance based awards and our live share price feeds facilitate this valuation type.

    We also offer offline models such as Monte Carlo and Binomial, which once calculated, can be easily imported into our system to integrate with all downward expense accrual, deferred tax, EPS and disclosure reporting.

  • Valuation types

    The automated valuation system will revalue all grants based on the 5 primary methodologies outlined on the below matrix.

    These outline the high level principles behind our systems valuation methodology.

    All of your valuations are taken care of automatically when they need to be calculated.

Automating Black Scholes

  • Expected Life Input

    Review your historical activity to see past expected life statistics for the different participant sets held within your data.

    Use those figured or alliteratively offline calculated figures to determine the expected life component of the Black Scholes valuation model.

    Tag the expected life inputs for executive, director and general employee groupings as required or simply have a one for all input.

  • Market Price Input

    Use our live market price feeds to facilitate this input. No admin or data input required here – your market prices are just here waiting for you.

    We also facilitate multiple securities so if you’re quoted on local exchange and in ADRs, our system will pick up different market prices for grants associated with different securities.

  • Risk Free Rate Input

    Our live risk free rate & interest rate feeds mean that you don’t need to research different sources every time you are valuing a grant.

    We have Federal Reserve Risk Free Rates, ECB Yield Curve Rates and BOE Interest rates generating daily into our system for all of the different maturity periods.

  • Dividend Input

    Need to incorporate a dividend rate into your Black Scholes valuation?

    Our valuation tool facilitates this and also facilitates entry for multiple securities with associated effective dating.

  • Volatility Input

    Volatility is automated for all client types. For private companies, create a peer group of public equivalents with different weighting values.

    For public companies, they combine peer group securities with their own  security weighting which increases as more history becomes available.

  • Grant Price Input

    Our Black Scholes calculator automatically brings in grant prices associated with option & SAR grants that are entered into our system.

    No need for re-input. These grant prices, combined with the rest of the inputs will result in an accurate fair value result.

In addition to our industry leading Financial Reporting products, we also offer state-of-the-art reporting tools to meet your needs for SEC Disclosure and Proxy Reporting, Tax Reporting, and Mobility Tracking and Reporting.

  • Have questions about our Automated Fair Value Calculation model? Our experts would be delighted to discuss your stock plan requirements.

  • Contact Us