The formula to calculate the value of an Employee Stock Ownership Plan (ESOP) is:
ESOP=TSO×PPS
Where:
An Employee Stock Ownership Plan (ESOP) is a benefit plan offered to some employees of companies that provides those employees with a number of stocks in the company. Those stocks can be issued immediately or held for a later date. Providing employees with part ownership in the form of stocks helps align the interests of the shareholders with the interest of the employee since the employee is now a part-owner.
Let's assume the following values:
Using the formula:
ESOP=1000×50=50000
The value of the Employee Stock Ownership Plan (ESOP) is \$50,000.