ENLV WACC - Weighted Average Cost of Capital
The WACC of Enlivex Therapeutics Ltd (ENLV) is 8.6%.
| Range | Selected | |
| Cost of equity | 11.2% - 15.8% | 13.5% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.4% - 9.7% | 8.6% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.59 | 1.95 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.2% | 15.8% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.4% | 9.7% |
| Selected WACC | 8.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ENLV | Enlivex Therapeutics Ltd | 1 | 1.12 | 0.65 |
| ABEO | Abeona Therapeutics Inc | 0.06 | 1.45 | 1.39 |
| AEZS.TO | Aeterna Zentaris Inc | 0.03 | 1.92 | 1.89 |
| CELC | Celcuity Inc | 0.24 | 1.24 | 1.05 |
| DMAC | DiaMedica Therapeutics Inc | 0 | 1.1 | 1.1 |
| ENOB | Enochian Biosciences Inc | 0.14 | 0 | 0 |
| FENC | Fennec Pharmaceuticals Inc | 0.1 | 1.95 | 1.82 |
| MTNB | Matinas BioPharma Holdings Inc | 0 | 1.43 | 1.42 |
| NBSE | NeuBase Therapeutics Inc | 0.06 | 1.55 | 1.49 |
| NYMX | Nymox Pharmaceutical Corp | 0.01 | 0.02 | 0.02 |
| OBSV | Obseva SA | 3.13 | 0.43 | 0.13 |
| Low | High | |
| Unlevered beta | 1.05 | 1.39 |
| Relevered beta | 1.88 | 2.42 |
| Adjusted relevered beta | 1.59 | 1.95 |
ENLV's CAPM model and how its cost of Equity is calculated
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for ENLV:
cost_of_equity (13.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.59) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.