Can someone explain to me how equity works for Google Bets like Verily? Is it valuable? I’m not super well-versed in stock options and am trying to figure out how to compare TC when factoring in my current Amazon RSUs vs. potential Verily stock. The base pay at Verily would be much higher. #googlesalary
Illiquid assets like private equity will generally have higher risk and higher upside. The time discounted expected value should be a bit higher than the dollar value quoted to you because investors would pay at least some amount for less risk. For companies with multiple rounds and real investors the price has been set by a market force and should be somewhat reliable. Alphabet is a bit of an abnormal case because I'm not sure if the valuation process would give the same result as a market of investors, but since we are seeing more and more bets take outside funding, it seems the valuations are not bogus. If you are trying to price options and not RSUs, there is the Black-Scholes approach to pricing them. (American calls are usually worth more than fair market minus strike.)
Super helpful, thank you!!
It’s worth 0. Nothing will ever come out of bets lol
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Won't they get Google stock?
No, they're different companies.
Both under Alphabet though right? That's GOOG