1. Catalog
  2. Finance
  3. Options Pricing & Valuation
  4. Warrants and Management Options - Excel Valuation Model
Warrants and Management Options - Excel Valuation Model
  • Warrants and Management Options - Excel Valuation Model
Originally published: 20/06/2016 10:05
Last version published: 02/02/2018 14:49
Publication number: ELQ-91646-2
View all versions & Certificate
certified

Warrants and Management Options - Excel Valuation Model

Warrants and Management Options Excel Model for valuing options that result in dilution of the underlying stock.

Prof. Aswath Damodaranby Prof. Aswath Damodaran
Professor at NYU Stern School of BusinessFollow 1,091
NYU Stern School of Businesswith NYU Stern School of Business
An Education in PossibleFollow 62
15 reviews3,360 views|Start the discussion!|Bookmark download for free
financewarrantsoptions pricingmanagement optionsvaluation modelstock
Description
This Excel Valuation model is designed to value options, the exercise of which can create more shares and thus affect the stock price. This is the case with warrants and management options. It is also the case with convertible bonds. As a general rule, using an unadjusted option pricing model to value these options will overstate their value.

- Prof. Aswath Damodaran

Side note: If you have appreciated this model, feel free to give it a rating/review!

This Best Practice includes
1 Excel Model File

Prof. Aswath Damodaran offers you this Best Practice for free!

download for free

Add to bookmarks

Discuss

Further information

The objective of this model is to get the following output:
- value of the call

It is useful in valuing warrants and management options


4.5 / 5 (15 votes)

please wait...