Calculate Your 409A Valuation
Enter your company details below to estimate fair market value and analyze stock option tax implications
Important Tax Disclaimer
This calculator is provided for informational and educational purposes only. It is NOT a substitute for professional tax advice. Tax laws are complex and subject to change. Always consult with a qualified tax advisor, CPA, or tax attorney before making any decisions regarding stock option exercises or tax planning.
409A FMV
$0.96
per common share
Preferred Price
$1.00
last round price
Discount Applied
35%
DLOM discount
Revenue Multiple
3.8x
implied valuation
Exercise Cost Analysis
Options to Exercise10,000 shares
Exercise Price$0.96/share
Total Cost$9,620
Current Value$9,620
Tax Impact Summary
ISO Tax Treatment
AMT Income$0
AMT Tax$0
Effective Tax Rate20.0%
Company Valuation Inputs
$
24 months ago
$
%
Valuation Adjustments
35%
Discount for lack of marketability
x
For DCF valuation method
Valuation Methods Comparison
Last Round
40% weight$50,000,000
DCF
30% weight$81,250,000
Comparable
20% weight$37,500,000
Asset-Based
10% weight$25,000,000
Weighted Average Valuation
$54,375,000
Stock Option Analysis
Projected Option Value Over Time
Tax Strategy Comparison
Early Exercise (Now)
Exercise at current 409A FMV
- +No immediate tax (ISO) or minimal spread (NSO)
- +Start capital gains holding period
- -Risk: $9,620 cash outlay
- File 83(b) election within 30 days
Exercise at Liquidity
Wait until acquisition or IPO
- +No upfront cash required
- -Higher tax on larger spread
- -NSO: Ordinary income tax on full gain
- !ISO: Potential AMT issues
Exercise After Vesting
Exercise vested shares periodically
- +Moderate cash outlay over time
- +Manage AMT exposure (ISO)
- +Some long-term capital gains
- ~Balance risk and tax efficiency
Key Insights & Recommendations
- -Current 409A valuation is 96% of preferred price
- -Exercising 10,000 options requires $9,620 in cash
- -AMT exposure of $0 may trigger $0 in additional tax
- -Break-even stock price: $1 (including taxes)
- -Consider early exercise if you believe in >3x growth and can afford the cash outlay
Want to learn more about 409A valuations?
Read our comprehensive guide covering 409A valuation methods, costs, timing, and how to maximize stock option value.
Read the complete 409A valuation guide