Employee options: for an ASX-listed company the valuation task is reasonably straight-forward. However, for an unlisted company (think start-up) the task is far more complex. Peloton is regularly asked to assist start-ups, technology companies and private companies more generally to assist with the valuation of securities used for retention and reward under an employee equity scheme. We have summarised the critical ‘moving parts’ of a typical option valuation in the chart below.
