Work out equity offer value instantly with clear inputs, formula shown and shareable results.
An equity grant should be compared with cash on an annualised basis: intrinsic value divided by the vesting period. Intrinsic value is only the spread between fair value and strike, and the exercise cost is real cash you must find — often the largest practical obstacle.
Intrinsic value
Intrinsic = Options x max(0, Fair value - Strike price)
Annualised
Annualised = Intrinsic value / Vesting years
Then the intrinsic value is zero today and the grant is a pure bet on future appreciation. Value it heavily discounted when comparing offers.
Yes. RSUs have no strike price, so their value is the full share price and they retain value even if the price falls. They are far less risky than options.