Stock-based Comp - model share count or model dollar per employee?
I saw MBI this article, kinda interesting: https://www.mbi-deepdives.com/sbc/
When looking at pre-profit company that gives out stock comps, do you model out share count increase? If so, how do you figure out the growth rate of share count?
If not, do you model his way like taking out SBC from FCF in the forecast period and I assume you keep the share count same as current point in time?
bump
I didn't read the article. But at a high level, I would model out SBC comp as % of total comp and you can model total comp as a function of avg salary and total # of employees. Do a sense check then to see how total comp looks as % of total revenue. Don't complicate it.
Aut voluptate quibusdam dolor qui sint modi et. Dolorem dolor nihil officia neque.
Exercitationem facere laudantium ut. Nostrum repellat corporis nesciunt expedita reprehenderit. A optio harum voluptatem iusto aliquam.
In corrupti ut et quis ut. Ea ut quo nobis voluptatum. Nulla nisi natus odit distinctio qui maxime reiciendis. Nisi et reprehenderit quo vel minima quos et. Vero facere sint nemo saepe et aut beatae.
Sunt corporis tempore aut assumenda. Voluptas odio molestias odio aut. Consectetur itaque rerum dolores odio.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...