ENOB WACC - Weighted Average Cost of Capital
The WACC of Enochian Biosciences Inc (ENOB) is 8.4%.
| Range | Selected | |
| Cost of equity | 6.3% - 11.9% | 9.1% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.0% - 10.9% | 8.4% |
| Category | Low | High |
| Long-term bond rate | 4.2% | 4.7% |
| Equity market risk premium | 5.0% | 6.0% |
| Adjusted beta | 0.43 | 1.13 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 11.9% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.14 | 0.14 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.0% | 10.9% |
| Selected WACC | 8.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ENOB | Enochian Biosciences Inc | 0.14 | 0 | 0 |
| AEZS.TO | Aeterna Zentaris Inc | 0.03 | 1.92 | 1.89 |
| CELC | Celcuity Inc | 0.24 | 1.24 | 1.05 |
| FENC | Fennec Pharmaceuticals Inc | 0.1 | 1.95 | 1.82 |
| NYMX | Nymox Pharmaceutical Corp | 0.01 | 0.02 | 0.02 |
| OBSV | Obseva SA | 3.13 | 0.43 | 0.13 |
| PSTI | Pluristem Therapeutics Inc | 0.74 | 1.87 | 1.21 |
| PTN | Palatin Technologies Inc | 0.02 | -0.17 | -0.17 |
| XFOR | X4 Pharmaceuticals Inc | 4.46 | 1.18 | 0.28 |
| 950220.KQ | Neoimmunetech Inc (Pre-reincorporation) | 0 | 0.44 | 0.44 |
| Low | High | |
| Unlevered beta | 0.22 | 0.69 |
| Relevered beta | 0.15 | 1.19 |
| Adjusted relevered beta | 0.43 | 1.13 |
ENOB'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 ENOB:
cost_of_equity (9.10%) = risk_free_rate (4.45%) + equity_risk_premium (5.50%) * adjusted_beta (0.43) + 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.