THE BARATELLI INSTITUTE · Mentoring at Scale
SBC VALUATION SUITE · THE SIMPLEST MODEL

Intrinsic value · RSUs, RSAs, and deep-ITM options

For restricted stock units (RSUs) — the standard tech-company employee equity — the grant-date fair value is just the stock price. No volatility, no risk-free rate, no Black-Scholes. The only complexity is the per-period expense recognition over the vesting schedule, and an optional discount for post-vesting trading restrictions (a DLOM-style adjustment). This tool produces the full expense recognition schedule, period by period, that the auditor will trace.

Price × shares
Grant fair value
Vesting schedule
Cliff or graded
Expense table
Period by period
DLOM option
Restricted-stock discount
STAGE 1 OF 4

Award type and grant size

RSU is the default for public-company tech employees. Option choice only relevant for awards where intrinsic value is sufficient to dominate time value.
$
Closing price on grant date (public) or 409A FMV (private).
STAGE 2 OF 4

Vesting schedule

Most public companies recognize quarterly; private companies often go annual.
STAGE 3 OF 4

Post-vesting trading restrictions (optional)

If the award is subject to post-vesting trading restrictions beyond ordinary lockup (e.g., a multi-year hold period imposed by board policy), ASC 718 permits a discount to grant-date fair value. Typical range: 5-25% depending on the restriction term.

%
Default 0%. Set positive only if a specific contractual restriction exists, with a defensible valuation memo supporting the discount.
Most companies do not apply a discount. Standard 6-month IPO lockup or ordinary insider-trading-window restrictions are not sufficient under ASC 718. Discounts require specific contractual restrictions beyond what other shareholders face.
STAGE 4 OF 4

Per-period vesting expense schedule

WANT THE METHODOLOGY BEHIND THIS TOOL?
Read more in the CFO Guide.
The tool gives you the answer. The guide gives you the argument — the case law, the worked examples, the negotiation playbook, the cross-check tables, the exception cases.
The methodology behind this calculator is in Ch 19 Stock-Based Compensation of the reference guide.
Read more in the CFO Guide → Browse all 22 guides