ESOmanager.com launches free Employee Stock Option valuation website

In response to the challenge of valuing and expensing all employee stock options http://www.esomanager.com has just launched a free valuation service featuring an advanced ESO valuation model. The valuation model is free to use online and provides comprehensive online help to guide the user through the valuation process.

ESOmanager uses a customised lattice option pricing model (as recommended by Financial Reporting Standard 123) which more accurately models the unique features of employee stock options. This implementation can save firms up to 50% on the option expense they would incur using other more traditional option pricing models such as Black-Scholes. Several unique features such as dilution discount estimation and yield curve inputs further reduce the option expense whilst remaining compliant with financial reporting standards.

Additionally, the site provides a tool for calculating the crucial volatility input to the model using either the firm’s stock price or existing options on the stock.