See title. Per 409a RSUs have some value but ISOs have $0 value as strike price must be at least as high. Some ppl put annual options x strike price as annual equity value but that doesn't make sense at all and there's ton of difference between 1k@$10 and 10k@$1. #stripe #airbnb #databricks #instacart #doordash #roblox #nextdoor #compass #samsara
(Last preferred price minus 409a) times number of options, because strike price comes from 409a when the options are approved by the board but public price should converge with preferred at IPO
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Start with Black-Scholes. Apply a discount for illiquidity and future dilution.
Most candidates won't have the means to do that. I don't think I've seen even one estimation going as far as Black-Scholes or DCF. Would you suggest anything more practical?