Many securities issued in connection with share-based compensation or M&A transactions involve derivatives that require a valuation for financial reporting or tax purposes.
Our quantitative finance professionals specialized in developing customized models and deriving supportable inputs for these valuations.
Our services include:
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Derivatives Valuation
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Valuations for Equity Awards and Share-Based Compensation
Duff & Phelps has deep experience with the full range of equity valuation techniques, including:
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Monte Carlo simulation analysis which captures path dependency and correlation
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Binomial lattice models, customised to capture key features such as early exercise behaviour
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Closed form solutions such as the Black-Scholes formula
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Least Squares Monte Carlo simulation which captures both path dependency and early exercise behaviour
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Default and recovery rate modeling
Our professionals are skilled in determining which approach is most appropriate, and tailoring the analysis to the specific situation at hand.
