The Estimated Value in Cake is designed so that you can not only show how many options / shares an employee or shareholder has in the company, or the % of equity that may represent, we want them to be able to see what their equity could be worth based on the company's most recent valuation. We find that employees in particular find it easier to understand options and how valuable they really can be when they can see it based on a valuation as opposed to just a number of options granted.
The current share price is calculated using the most recent valuation that has been added under Company -- Valuations and dividing this by the total securities on issue in the company.
This share price is then multiplied by the total granted options that employee has or the total shares held by that shareholder to determine the estimated value of those options or shares based on the most recent company valuation.
It is important to note that this is only an estimate value of what all granted options could be worth, based on the company's most recent valuation and total securities on issue.
Within the stakeholder portal, option holders will be able to look at the estimated value factoring in the total price payable by them at the time of exercise -
To allow your stakeholders to view the estimated value of their equity, just make sure your valuation is up to date by following the below:
Head to Company;
From the drop down menu, choose Valuations;
In the top right corner, click + Add valuation;
Enter the most recent post money valuation, a date and round you would like to associate with this valuation;
Hit Save
If you'd prefer not to display this to your employees or shareholders (one or the other, or both!) you can turn this feature off altogether using the toggle bar under the 'Valuations visibility settings' in the Company -- Valuations tab as below.
