Entera Bio Ltd. (ENTX) Discounted Future Market Cap

Entera Bio Ltd.

ENTX (NASDAQ)

(%)

Valuation
Entera Bio Ltd. Discounted Future Market Cap

"""
    Model: Discounted Future Market Cap

# Render model description
model.render_description(r"""
## Discounted Future Market Cap

This model estimates the intrinsic value of a common share by projecting the Future Market Capitalization using the estimated PE Ratio and then discounting it to the Present using an Annual Required Rate of Return.
""")

# Initialize assumptions
assumptions.init({
    "data": {
        "%discount_rate": None,
        "beta": data.get("profile:beta", default=1),
        "%risk_free_rate": data.get("treasury:year10"),
        "%market_premium": data.get("risk:totalEquityRiskPremium"),
        "pe_ratio": data.get("quote:close") / data.get("income:eps"),
        "%revenue_growth_rate": None,
        "%net_income_margin": None,
        "historical_years": 10,
        "projection_years": 5,
    },
    "hierarchies": [{
        "parent": "%discount_rate",
        "children": ["beta", "%risk_free_rate", "%market_premium"]
    }]
})

# Calculate cost of equity
cost_of_equity = assumptions.get("%risk_free_rate") + assumptions.get("beta") * assumptions.get("%market_premium")
assumptions.set("%discount_rate", cost_of_equity)

# Compute metrics
data.compute({
    "%grossMargin": "income:grossProfit / income:revenue",
    "%operating_margin": "income:operatingIncome / income:revenue",
    "%netMargin": "income:netIncome / income:revenue",
    "%revenueGrowthRate": "function:growth:income:revenue",
    "%netIncomeGrowthRate": "function:growth:income:netIncome",
    "%totalStockholdersEquityGrowthRate": "function:growth:balance:totalStockholdersEquity",

# Calculating NOPAT (Net Operating Profit After Taxes)
    "%taxRate": "income:incomeTaxExpense / income:incomeBeforeTax",
    "incomeTax": "income:operatingIncome * %taxRate",
    "nopat": "income:operatingIncome - incomeTax",

# Calculating Invested Capital
    "investedCapital": [
        "balance:totalNonCurrentAssets", "-", "balance:cashAndCashEquivalents", "+",
        "balance:totalCurrentAssets", "-", "balance:totalCurrentLiabilities"
    ],
    "%roic": "nopat / investedCapital",
})

assumptions.set("%net_income_margin",
                data.average(f"%netMargin:{-assumptions.get('historical_years')}->0"))  # Historical average
assumptions.set("%revenue_growth_rate",
                data.average(f"%revenueGrowthRate:{-assumptions.get('historical_years')}->0"))  # Historical average

# Calculate a linear regression for forecasting revenues
data.compute({
    "linearRegressionRevenue": f"function:linear_regression:income:revenue start:{-assumptions.get('historical_years')}",
}, forecast=assumptions.get("projection_years"))

# Compute forecasted values and ratios
data.compute({
    "income:revenue": f"function:compound:{data.get('linearRegressionRevenue:1')} rate:{assumptions.get('%revenue_growth_rate')} offset:-1",
    "%revenueGrowthRate": "function:growth:income:revenue",
    "income:netIncome": f"income:revenue * {assumptions.get('%net_income_margin')}",
}, forecast=assumptions.get("projection_years"))

projected_revenue = data.get("revenue")
projected_net_income = data.get(f"income:netIncome:{assumptions.get('projection_years')}")

shares_outstanding = data.get("income:weightedAverageShsOut")
future_market_cap = assumptions.get("pe_ratio") * projected_net_income
discounted_future_market_cap = future_market_cap / (
            (1 + assumptions.get("%discount_rate")) ** assumptions.get("projection_years"))

stock_value = discounted_future_market_cap / shares_outstanding

# Set the final value
model.set_final_value({
    "value": stock_value,
    "units": "$"
})

# Render results
model.render_results([
    [stock_value, "Present Value", "$"],
    [projected_net_income, "Estimated net income", "$"],
    [future_market_cap, "Estimated market capitalization", "$"],
    [discounted_future_market_cap, "Market capitalization discounted to present", "$"],
    [shares_outstanding, "Shares Outstanding", "#"],
    [data.get("income:eps"), "Earnings Per Share (EPS)", "$"],
    [data.get("quote:close"), "Market Price", "$"],
    [data.get("ratio:priceEarningsRatio"), "Price to Earnings (PE) Ratio", "#"]
])

# Render chart
model.render_chart({
    "data": {
        "income:revenue": "Revenue",
        "income:netIncome": "Net Income",
        "linearRegressionRevenue": "Linear Regression Revenue"
    },
    "start": -assumptions.get("historical_years"),
    "end": "*",
    "properties": {
        "title": "Historical and forecasted data",
        "number_format": "M",
        "set_editable": [
            "income:revenue",
            "income:netIncome"
        ],
        "hidden_keys": ["linearRegressionRevenue"]
    }
})

# Render table for estimated future values
model.render_table({
    "data": {
        "income:revenue": "Revenue",
        "%revenueGrowthRate": "Revenue Growth Rate",
        "income:netIncome": "Net Income",
    },
    "start": -1,
    "end": "*",
    "properties": {
        "title": "Estimated Future Values",
        "order": "ascending",
        "number_format": "M"
    }
})

# Render historical values table
model.render_table({
    "data": {
        "income:revenue": "Revenue",
        "income:costOfRevenue": "Cost of Revenue",
        "income:grossProfit": "Gross Profit",
        "%grossMargin": "Gross Margin",
        "income:operatingIncome": "Operating Income",
        "%operating_margin": "Operating Margin",
        "income:netIncome": "Net Income",
        "%netMargin": "Net Margin",
    },
    "start": -assumptions.get("historical_years"),
    "end": 0,
    "properties": {
        "title": "Historical Values",
        "display_averages": True,
        "order": "descending",
        "number_format": "M"
    },
})

# Render historical growth rates table
model.render_table({
    "data": {
        "income:revenue": "Revenue",
        "%revenueGrowthRate": "Revenue Growth Rate",
        "income:netIncome": "Net Income",
        "%netMargin": "Net Margin",
        "%netIncomeGrowthRate": "Net Income Growth Rate",
        "balance:totalStockholdersEquity": "Stockholders Equity",
        "%totalStockholdersEquityGrowthRate": "Equity Growth Rate",
        "%roic": "Return on Invested Capital (ROIC)",
        "nopat": "After-tax Operating Income",
        "%taxRate": "Income Tax Rate",
        "investedCapital": "Invested Capital",
    },
    "start": -assumptions.get("historical_years"),
    "end": 0,
    "properties": {
        "title": "Historical Growth Rates",
        "display_averages": True,
        "order": "descending",
        "number_format": "M"
    },
})

# Set description for assumptions
assumptions.set_description({
    "%discount_rate": r"""
        ## Discount Rate

`Discount Rate` = `Cost of Equity` = `Risk Free Rate` + `Beta` * `Market Premium`

The cost of equity is the theoretical rate of return that an equity investment should generate. It is calculated using the CAPM formula.

[Read More](https://www.investopedia.com/terms/c/costofequity.asp#mntl-sc-block_1-0-20)
    """,

"beta": r"""
        ## Beta

Beta is a value that measures the price fluctuations (volatility) of a stock with respect to fluctuations in the overall stock market.
    """,

"%risk_free_rate": r"""
        ## Risk-Free Rate

The risk-free rate represents the interest an investor would expect from an absolutely risk-free investment over a specified period of time.
        By default, it is equal to the current yield of the U.S. 10 Year Treasury Bond.
    """,

"%market_premium": r"""
        ## Market Premium

Market risk premium represents the excess returns over the risk-free rate that investors expect for taking on the incremental risks connected to the equities market.
    """,

"pe_ratio": r"""
        ## Price to Earnings (PE) Ratio

Estimated Price to Earnings (PE) Ratio at the end of the projection period.

`Future Market Cap` = `PE Ratio` * `Projected Net Income`
    """,

"%revenue_growth_rate": r"""
        ## Revenue Growth Rate

The annual revenue growth rate is applied to projected revenue starting from the second projection year onward.
    """,

"%net_income_margin": r"""
        ## Net Income Margin

Net Income expressed as a percentage of Revenue.
    """,

"historical_years": r"""
        ## Historical Years

The number of historical years used to calculate averages for historical data.
    """,

"projection_years": r"""
        ## Projection Years

The number of years for projecting the analysis into the future.
    """,
})

print("End of model.")

Estimated Value

USD

Market Price USD

* Values are not guaranteed, please do your own
research before making investment decisions.

Discounted Future Market Cap

Interactive Assumptions

Discount Rate Discount Rate `Discount Rate` = `Cost of Equity` = `Risk Free Rate` + `Beta` * `Market Premium` The cost of equity is the theoretical rate of return that an equity investment should generate. It is calculated using the CAPM formula. Read More	%
↳ Beta Beta Beta is a value that measures the price fluctuations (volatility) of a stock with respect to fluctuations in the overall stock market.	#
↳ Risk Free Rate Risk-Free Rate The risk-free rate represents the interest an investor would expect from an absolutely risk-free investment over a specified period of time. By default, it is equal to the current yield of the U.S. 10 Year Treasury Bond.	%
↳ Market Premium Market Premium Market risk premium represents the excess returns over the risk-free rate that investors expect for taking on the incremental risks connected to the equities market.	%
Pe Ratio Price to Earnings (PE) Ratio Estimated Price to Earnings (PE) Ratio at the end of the projection period. `Future Market Cap` = `PE Ratio` * `Projected Net Income`	#
Revenue Growth Rate Revenue Growth Rate The annual revenue growth rate is applied to projected revenue starting from the second projection year onward.	%
Net Income Margin Net Income Margin Net Income expressed as a percentage of Revenue.	%
Historical Years Historical Years The number of historical years used to calculate averages for historical data.	#
Projection Years Projection Years The number of years for projecting the analysis into the future.	#

Results
Present Value	-7.83 USD
Estimated net income	-5.92 Mil. USD
Estimated market capitalization	-564.3 Mil. USD
Market capitalization discounted to present	-339.8 Mil. USD
Shares Outstanding	43.38 Mil.
Earnings Per Share (EPS)	0.019 USD
Market Price	1.86 USD
Price to Earnings (PE) Ratio	-16.28

Historical and forecasted data

In Millions of USD

{"sectionId": "section-chart-1", "sectionType": "chart", "title": "Historical and forecasted data", "dates": [2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022, 2023, 2024, 2025, 2026, 2027, 2028, 2029], "series": [{"label": "Revenue", "mappingKey": "income:revenue", "data": [0.0, 0.0, 0.0, 0.5, 0.236, 0.365, 0.571, 0.134, 0.0, 0.181, {"y": 0.287, "oy": 0.287, "e": true, "c": 2025, "g": 58.42, "og": 58.42}, {"y": 0.241, "oy": 0.241, "e": true, "c": 2026, "g": -15.84, "og": -15.84}, {"y": 0.203, "oy": 0.203, "e": true, "c": 2027, "g": -15.84, "og": -15.84}, {"y": 0.171, "oy": 0.171, "e": true, "c": 2028, "g": -15.84, "og": -15.84}, {"y": 0.144, "oy": 0.144, "e": true, "c": 2029, "g": -15.84, "og": -15.84}], "dataType": ".", "numberFormat": "M", "hidden": false}, {"label": "Net Income", "mappingKey": "income:netIncome", "data": [-4.28, -1.2, -11.2, -10.3, -10.88, -9.98, -12.19, -13.07, -8.89, -9.54, {"y": -11.79, "oy": -11.79, "e": true, "c": 2025, "g": 23.61, "og": 23.61}, {"y": -9.93, "oy": -9.93, "e": true, "c": 2026, "g": -15.84, "og": -15.84}, {"y": -8.35, "oy": -8.35, "e": true, "c": 2027, "g": -15.84, "og": -15.84}, {"y": -7.03, "oy": -7.03, "e": true, "c": 2028, "g": -15.84, "og": -15.84}, {"y": -5.92, "oy": -5.92, "e": true, "c": 2029, "g": -15.84, "og": -15.84}], "dataType": ".", "numberFormat": "M", "hidden": false}, {"label": "Linear Regression Revenue", "mappingKey": "linearRegressionRevenue", "data": [0.127, 0.143, 0.159, 0.175, 0.191, 0.207, 0.223, 0.239, 0.255, 0.271, 0.287, 0.303, 0.319, 0.335, 0.351], "dataType": ".", "numberFormat": "M", "hidden": true}], "editableDates": {"2025": 36, "2026": 37, "2027": 38, "2028": 39, "2029": 40}, "properties": {"number_format": "M", "display_table": true}, "width": "full"}

Edit Chart Values	2025	2026	2027	2028	2029

↳ Growth Rate

Estimated Future Values

amounts of USD except for #	2024	LTM	2025	2026	2027	2028	2029
Revenue	0.181	0.223	0.287	0.241	0.203	0.171	0.144
Revenue Growth Rate		23.2%	58.42%	-15.84%	-15.84%	-15.84%	-15.84%
Net Income	-9.54	-4.96	-11.79	-9.93	-8.35	-7.03	-5.92

Historical Values

amounts of USD except for #	Average	LTM	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
Revenue	0.316	0.223	0.181	0	0.134	0.571	0.365	0.236	0.5	0	0	0
Cost of Revenue	0.144	0.214	0.172	0.056	0.101	0.373	0.209	0.21	0	0.043	0.035	0.028
Gross Profit	0.07	0.009	0.009	-0.056	0.033	0.198	0.156	0.026	0.5	-0.043	-0.035	-0.028
Gross Margin	31.73%	4.04%	4.97%		24.63%	34.68%	42.74%	11.02%	100%
Operating Income	-7.49	-7.52	-9.59	-8.89	-13.02	-12.22	-11.13	-11.45	-10.86	11.34	-5.37	-3.7
Operating Margin	-4,371%	-3,374%	-5,296%		-9,714%	-2,140%	-3,050%	-4,853%	-2,172%
Net Income	-8.77	-4.96	-9.54	-8.89	-13.07	-12.19	-9.98	-10.88	-10.3	-11.2	-1.2	-4.28
Net Margin	-4,113%	-2,223%	-5,271%		-9,754%	-2,134%	-2,735%	-4,610%	-2,061%

Historical Growth Rates

amounts of USD except for #	Average	LTM	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
Revenue	0.316	0.223	0.181	0	0.134	0.571	0.365	0.236	0.5	0	0	0
Revenue Growth Rate	-15.84%	23.2%		-100%	-76.53%	56.44%	54.66%	-52.8%
Net Income	-8.77	-4.96	-9.54	-8.89	-13.07	-12.19	-9.98	-10.88	-10.3	-11.2	-1.2	-4.28
Net Margin	-4,113%	-2,223%	-5,271%		-9,754%	-2,134%	-2,735%	-4,610%	-2,061%
Net Income Growth Rate	70.79%	-48.05%	7.33%	-31.99%	7.25%	22.08%	-8.24%	5.58%	-7.98%	833.9%	-72%
Stockholders Equity	1.67	19.38	8.08	10.39	11.75	22.57	6.67	11.92	10.12	-31.56	-25.25	-25.69
Equity Growth Rate	16.16%	139.8%	-22.2%	-11.64%	-47.91%	238.6%	-44.08%	17.82%	-132.1%	25%	-1.72%
Return on Invested Capital (ROIC)	538.2%	22.3%	2,152%	2,586%	2,515%	588.5%	695.5%	375.5%	-282.9%	-2,294%	63.75%	-501.5%
After-tax Operating Income	-6.75	1.65	-9.6	-8.92	-13.15	-12.16	-11.16	-11.54	-11.45	11.2	-5.37	-3.7
Income Tax Rate	12.87%	122%	-0.147%	-0.327%	-1.06%	0.482%	-0.201%	-0.778%	-5.41%	1.3%	0%	0%
Invested Capital	-0.434	7.4	-0.446	-0.345	-0.523	-2.07	-1.6	-3.07	4.05	-0.488	-8.42	0.738