Porter White & Company (PW&Co) was retained to provide a valuation of options on shares of a publicly traded company awarded to employees. PW&Co provided a third-party, independent valuation of the stock options after analyzing the Company’s historical trading volatility, pricing, and dividend yield and applying industry standard valuation techniques using option pricing models.
Prior to changes in accounting standards, stock option awards were treated as if they were worth intrinsic value and effectively had no cost as of the date of the award. Now companies that award stock options must determine the value of the options using market based approaches as well as pricing models that rely on certain assumptions that must be determined.
Goodloe White, CFA and Michael Stone, CFA, AM worked on this assignment. The CFA (Chartered Financial Analyst) Program is a globally recognized, graduate level curriculum that provides the knowledge and expertise finance professionals need in today’s economy. The Accredited Member (AM) designation is given by the American Society of Appraisers (ASA), a respected international organization devoted to providing the highest possible standards in ethics, professionalism, education and designation criteria in business valuation.
In addition to providing option valuations, PW&Co has valued numerous businesses for the purpose of gift and estate taxes, fairness opinions, strategic planning, credit quality for financial institutions, company stock plans, and in support of a capital raise or acquisition. Our team leverages 40 years of experience valuing companies in a range of industries. We stay current on applicable valuation standards and best practices, and use a variety of valuation methodologies in order to arrive at objective and defensible valuations for our clients.