Understanding Volatility in Stock-Based Compensation Valuation: A Guide to ASC 718 and SEC SAB #107
Volatility is one of the key assumptions that goes into the valuation of stock-based compensation. This brief will reference literature from ASC 718, SEC Staff Accounting Bulletin #107, and Infinite Equity’s research. FASB ASC paragraph...
Understanding Volatility: A Key Driver in Option and Performance Award Valuation
Volatility is one of the most impactful assumption inputs when valuing employee equity. It also requires judgement, as ASC 718 lays out criteria to consider, versus a prescribed methodology. The following summary highlights the impact...
How to Calculate Volatility Using VWAP Price
VWAP Volatility Infinite Equity's new approach to calculating historical volatility is to use Volume Weighted Average Prices (VWAPs). The merits of using this approach can be found in our Research Brief, A New Way to...
A New Way to Estimate Volatility
VWAP Volatility. Developing volatility assumptions is a common practice in the financial community, where many sophisticated techniques have been developed that go beyond simply calculating volatilities based on historical stock prices. The Black-Scholes, Monte Carlo,...
Compliance Requirements for Changes to Volatility Methodologies
VWAP Volatility Infinite Equity is introducing innovative new thought leadership on the financial theory around determining historical volatility for purposes of ASC718. Introduced in the Research Brief, A New Way to Estimate Volatility, and published...
Closing Prices Have Fat Tails
VWAP Volatility Infinite Equity is introducing innovative new thought leadership on the financial theory around determining historical volatility for purposes of ASC718. Introduced in the Research Brief, A New Way to Estimate Historical Volatility, and...
