Public Template: Stock Option Grant Evaluator for Candidates
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Calculator to evaluate the value of your option grant
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Make a copy of this for your own use by copying all cells and pasting into a new Google Sheet. You can then edit or download to Excel.
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The grey cells with blue font are variables that you can adjust, and the rest are formulas that should be left alone.
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Part 1: Estimating what number of options you should be granted
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Cash compensation offered by company
\$80,000
The total cash compensation offered to you by the prospective company
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Role/level categoryIndividual Contributor
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Option grant value multiplier0.23
This is the multiplier based on your level
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Target value of the option grant\$18,400
This could be considered a "market rate" grant value based on your comp and level
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Company revenue as of last month\$5,000,000
You'll need to get this information from the company
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Estimated revenue multiple5.0x
Ask the company what their valuation multiple was at the last round of fundraising
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Estimated market value of the company
\$300,000,000
This is what you estimate the company to be worth overall
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Fully diluted shares outstanding20,000,000
You'll need to get this from the company as well
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Implied market value per share\$15.00
The estimated value per share
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Most recent strike price\$1.75
Ask the company for the most recent stock price
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Implied 'notional value' per option\$13.25
The difference between the market value per share and the strike price
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ESTIMATED 'MARKET' OPTION GRANT
1,389
What the calculator says would be a reasonable option grant for your level/comp
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Part 2: Evaluating the grant you were given
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Fill in the information above first -- that data drives this section
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How many options they granted you1,500
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The implied value per option (from above)
\$13.25
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Total estimated value of the grant today
\$19,875
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Estimated target value of grant per above
\$18,400
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\$ amount over/(under) market\$1,475
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% amount over/(under) market8.02%
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What could your grant be worth in 4 years?
Revenue multiple in year 4...
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This is not a guarantee of value, and there is no specific timeline for your shares to become liquid (meaning you can cash out). We just want to give you an better sense for what your options could be worth if we execute well in the coming years.1.0x3.0x5.0x7.0x9.0x
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Annual 4 yr growth rate25%\$8,000\$30,000\$52,000\$74,000\$96,000
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50%\$20,000\$66,000\$111,000\$157,000\$202,000
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75%\$40,000\$124,000\$208,000\$293,000\$377,000
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100%\$69,000\$213,000\$357,000\$501,000\$645,000
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For example, if the company grows at 50% per year for the next 4 years, and are valued at 5x revenue, your current option grant would be worth \$111,000
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Equity multipliers by role.
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These are Skillshare's estimates based on Union Square's evaluation of local market comparables.
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Exec Team/C-level2.45
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VP1.86
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Director0.54
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Sr. Engineer0.40
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Engineer0.26
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Key Contributor/Specialist0.43
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Individual Contributor0.23
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