Overview
Employee Stock Option Plans (ESOPs) require valuation at multiple points — to set a fair exercise price at grant, to record a fair-value accounting charge, and to compute the perquisite value taxable in the employee’s hands on exercise.
Accurate ESOP valuations keep your plan compliant with company law, accounting standards and income-tax rules, and give employees clarity on the value of their options.
CorpRaasta provides ESOP valuations using recognised option-pricing and fair-value methods, coordinated with the appropriate registered professional where a statutory report is required.
What is ESOP Valuation?
ESOP valuation is the determination of the fair value of employee stock options — for grant pricing, accounting charges and perquisite taxation — using recognised valuation and option-pricing methods.
Why it matters
Correct ESOP valuation ensures compliant grant pricing, accurate accounting charges and correct perquisite tax on exercise — protecting both the company and employees from disputes and tax issues.
Key features
Who needs it
Documents required
How it works
Understand the plan
We review your ESOP scheme, grants and purpose.
Select method
An appropriate valuation/option-pricing method is chosen.
Valuation
Fair value is computed for grant, accounting or perquisite.
Report
A documented valuation report is delivered.