Share based payments valuations are required when an entity grants equity instruments or other forms of payment to its employees or suppliers as part of their remuneration or compensation. According to AASB 2, the entity must measure the fair value of the share based payments at the grant date and recognise the expense over the vesting period, with a corresponding increase in equity. Share based payments valuations can be complex and require assumptions about future performance, market conditions, and volatility.

Market Line has extensive experience in performing share based payments valuations for a variety of purposes and scenarios. Some examples of our work include:

• Valuing the equity awards granted to employees of a listed company, using binomial model and Monte Carlo simulations to account for performance and market vesting conditions.
• Valuing the management equity plan of a private equity backed company, using a scenario analysis to reflect the different exit outcomes and the impact on the value and dilution of the management shares.
• Valuing the stock options issued to key executives of a private national retail company, using a discounted cash flow approach to estimate the enterprise value and a capital structure analysis to allocate the value to different classes of equity.

SHAREHOLDER VALUE IS AT THE HEART OF WHAT WE DO