Restricted stock unit · RSU
Restricted stock units: value depends on the promise and conditions
A restricted stock unit is a contractual promise to deliver shares or cash after specified conditions are met. An RSU is not a stock option and has no exercise price unless the plan includes a separate feature that changes the payoff.
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Read the unit terms
The analysis should identify the underlying share, settlement form, vesting conditions, dividend or dividend-equivalent rights, deferral provisions, and what happens on termination, a financing, or a change in control.
For a plain equity-classified RSU with only a service condition, fair value may be closely connected to the underlying share value, adjusted as appropriate for dividends or other rights. Additional terms can make that shortcut incomplete.
Private-company share value remains central
A private-company RSU still requires a supportable value for the underlying share. The relevant value and measurement date depend on the purpose of the analysis. A recent financing price may not equal common-stock fair value when security rights differ.
If the award settles on a future liquidity event or includes cash-settlement provisions, classification and remeasurement questions may arise. Those are accounting determinations, not merely valuation inputs.
Conditions change the analysis
Service conditions, performance conditions, and market conditions have different implications under ASC 718. A market condition may need to be reflected in grant-date fair value, often through a simulation. A performance condition generally requires a separate probability and expense-recognition assessment.
Bring the question into focus.
Share the purpose, date, and company context to begin a practical scope discussion.