Option Valuations for IFRS 2, Tax & Transactions

If you’ve issued share options or performance rights, you’ll need a professional options valuation that’s IFRS 9 – compliant, defensible, and auditor-approved.

We deliver fast, expert valuations for:

Investor-linked options
Exit and buyback planning
Tax reporting and SARS submissions

Need to know the fair value of your options? We’ll help you get it right the first time.

Book a call with an options valuation specialist

What is an Option Valuation?

An option valuation determines the fair market value of a share option or similar right, typically required at the grant date and during financial reporting.

It’s critical for:

Financial statements
SARS tax submissions
Board decisions and investor communication
Mergers, acquisitions, or restructures

We ensure each option valuation is accurate, transparent, and fully documented for compliance and confidence.

Who Needs Option Valuations?

You’re likely here because you or your client:

Issued share options to employees or founders
Are preparing year-end financial statements or audit files
Need to comply with IFRS 9 or South African tax rules
Are raising capital or exiting, and need to clean up the cap table
Want clarity on dilution, equity value, or fair buyback price

Whether you’re a CFO, startup founder, advisor, or legal counsel, we’ve got you covered.

Options Valuation Models We Use:

Black-Scholes
Model

Used for plain-vanilla options with fixed exercise periods and no complex features. Requires estimation of volatility, term, and dividend assumptions.

Binomial Tree
Model

Suitable for more complex structures with early exercise features or performance conditions. Allows modelling of various scenarios over time

Monte Carlo Simulation Method

Used for market-based performance conditions or instruments with multiple interacting variables. Particularly useful in listed or high-growth entities.

Frequently asked questions

How do you value options?

Options are valued using financial models that reflect the option’s terms and market inputs. We select the right method, apply IFRS 9 standards, and deliver a defensible valuation report.

How are option prices calculated?

Option prices are calculated using models like Black-Scholes, binomial trees, or Monte Carlo simulations. These use inputs such as share price, volatility, and expiry to determine fair value.

What is the Black-Scholes model?

It’s a standard formula for valuing options based on share price, volatility, exercise price, and time to maturity.

What is the binomial tree for option pricing?

The binomial tree is a method for valuing options by modelling possible future movements in share price over discrete time intervals. It accounts for early exercise and varying conditions, making it useful for employee share options or complex instruments. The model builds a branching “tree” of price paths and calculates value through backward induction.

What is a Monte Carlo simulation?

Monte Carlo simulation is a valuation technique that uses thousands of randomised scenarios to estimate the value of options, particularly when the payout depends on complex or path-dependent outcomes. It’s commonly used for performance-based options or market-linked instruments, offering flexibility and precision where traditional models like Black-Scholes fall short.