ENLV
Enlivex Therapeutics Ltd
Price:  
0.94 
USD
Volume:  
6,770
Israel | Biotechnology

ENLV WACC - Weighted Average Cost of Capital

The WACC of Enlivex Therapeutics Ltd (ENLV) is 8.7%.

The Cost of Equity of Enlivex Therapeutics Ltd (ENLV) is 13.8%.
The Cost of Debt of Enlivex Therapeutics Ltd (ENLV) is 5%.

RangeSelected
Cost of equity11.5% - 16.1%13.8%
Tax rate26.2% - 27.0%26.6%
Cost of debt5.0% - 5.0%5%
WACC7.6% - 9.9%8.7%
WACC

ENLV WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta1.662.01
Additional risk adjustments0.0%0.5%
Cost of equity11.5%16.1%
Tax rate26.2%27.0%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC7.6%9.9%
Selected WACC8.7%

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 (13.80%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.66) + 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.