Wave Life Sciences Ltd.

WVE

HealthcareBiotechnologyNASDAQ

$7.24

Market Cap: $1.39B

Wave Life Sciences Ltd. (WVE) Valuation Summary

Updated Apr 6, 2026 22:29

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$10.56 – $32.82	$17.56	+147.7%
Revenue DCF 10Y	$2.41 – $4.19	$3.25	-54.2%
▸ Trading Multiples
EV/Revenue	$9.11 – $35.74	$13.59	+91.7%

Valuation History

DCF Analysis

Wave Life Sciences Ltd. (WVE) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$3.25

Market Price

$7.24

Upside / Downside

-55.1%

Verdict

Overvalued

Using a Revenue DCF model with operating margin convergence from -504.1% to a target of 13.3% over 5 years, discounted at a WACC of 8.7%, Wave Life Sciences Ltd. (WVE) has an intrinsic value of $3.25 per share (range: $2.41 – $4.19).

Key Assumptions

Current Operating Margin

-504.1%

Target Operating Margin

13.3%

WACC

8.7%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

8.4%

Target CapEx/Rev

101.4%

D&A/Revenue

67.6%

Tax Rate

21.0%

Operating margin fades linearly from the current level to the industry target over the 5-year projection. CapEx intensity fades from the historical average to a maintenance level (D&A × 1.5). Tax is only applied when operating income is positive (NOL shield).

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	34	-19.9%	-400.6%	-137	-137	23	(6)	-21	-99	-95
2027	67	95.0%	-297.1%	-198	-198	45	(18)	-34	-137	-121
2028	155	132.6%	-193.6%	-301	-301	105	(56)	-92	-160	-130
2029	324	109.0%	-90.2%	-292	-292	219	(148)	-176	-45	-33
2030	690	112.6%	13.3%	92	73	466	(379)	-381	541	372
2031	699	1.4%	13.3%	93	74	473	(449)	-10	107	68
2032	711	1.7%	13.3%	95	75	481	(523)	-12	45	26
2033	726	2.0%	13.3%	97	76	491	(601)	-15	-19	-10
2034	743	2.4%	13.3%	99	78	502	(684)	-18	-86	-42
2035	763	2.7%	13.3%	102	80	516	(773)	-21	-157	-71

Enterprise Value Bridge

Sum of PV(FCFF)-36

Terminal Value (Gordon Growth at 3.0%)0

PV of Terminal Value0

Enterprise Value-36

(–) Net Debt-584

Equity Value548

(÷) Shares Outstanding169

Fair Value per Share$3.25

Note:Terminal value is $0 because Year 5 FCFF is negative. The company's operating margin convergence does not fully offset reinvestment needs within 5 years. See the sensitivity matrix for scenarios where the model produces a positive terminal value (higher target margin or lower WACC).

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.3%	10.3%	13.3%	16.3%	19.3%
6.7%	$2	$3	$3	$4	$4
7.7%	$2	$3	$3	$4	$4
8.7%	$2	$3	$3	$4	$4
9.7%	$2	$3	$3	$4	$4
10.7%	$3	$3	$3	$4	$4

Current price: $7.24. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at -104.3% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Wave Life Sciences Ltd. (WVE) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$17.56

Market Price

$7.24

Upside / Downside

+142.5%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-504.1%

Target Operating Margin

13.3%

WACC

8.7%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

8.4%

Target CapEx/Rev

101.4%

D&A/Revenue

67.6%

Tax Rate

21.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	34	-19.9%	-400.6%	-137	-137	23	(9)	-21	-102	-98
2027	67	95.0%	-297.1%	-198	-198	45	(30)	-34	-150	-132
2028	155	132.6%	-193.6%	-301	-301	105	(100)	-92	-203	-165
2029	324	109.0%	-90.2%	-292	-292	219	(269)	-176	-165	-124
2030	690	112.6%	13.3%	92	73	466	(700)	-381	221	152

Enterprise Value Bridge

Sum of PV(FCFF)-367

Terminal Value (Gordon Growth at 3.0%)3,993

PV of Terminal Value2,744

Enterprise Value2,378

(–) Net Debt-584

Equity Value2,962

(÷) Shares Outstanding169

Fair Value per Share$17.56

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.3%	10.3%	13.3%	16.3%	19.3%
6.7%	$24	$26	$29	$31	$33
7.7%	$19	$20	$22	$24	$25
8.7%	$15	$16	$18	$19	$20
9.7%	$12	$13	$15	$16	$17
10.7%	$11	$11	$12	$13	$14

Current price: $7.24. Green = undervalued, Red = overvalued.

Working Capital Assumption

Trading Multiples

Fair Value

$13.59

Market Price

$7.24

Upside / Downside

+87.7%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Wave Life Sciences Ltd. (WVE) has a fair value of $13.59 based on 4 comparable companies in the Biotechnology industry.

EV/Revenue Valuation — Biotechnology

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Wave Life Sciences Ltd.WVE	1,221	14.9x	18.6x
Intellia Therapeutics, Inc.NTLA	1,571	22.3x	25.7x
Amylyx Pharmaceuticals, Inc.AMLX	1,315	14.2x	—
Precigen, Inc.PGEN	1,259	127.4x	10.7x
Zenas BioPharma, Inc.ZBIO	994	96.3x	102.6x
Industry Median		59.3x	25.7x
(*) Revenue		43	34
= Enterprise Value		2,534	881
(-) Net Debt		-584	-584
Equity Value		3,118	1,465
(/) Outstanding shares		169	169
Fair Price		$18	$9

Selected Fair Value (avg of trailing + forward)

$13.59

+87.7%

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Model

Range

Fair Value

Upside

▸ Discounted Cash Flow

Revenue DCF 5Y

$10.56 – $32.82

$17.56

+147.7%

Revenue DCF 10Y

$2.41 – $4.19

$3.25

-54.2%

▸ Trading Multiples

EV/Revenue

$9.11 – $35.74

$13.59

+91.7%

DCF Analysis

Wave Life Sciences Ltd. (WVE) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$3.25

Market Price

$7.24

Upside / Downside

-55.1%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-504.1%

Target Operating Margin

13.3%

WACC

8.7%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

8.4%

Target CapEx/Rev

101.4%

D&A/Revenue

67.6%

Tax Rate

21.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	34	-19.9%	-400.6%	-137	-137	23	(6)	-21	-99	-95
2027	67	95.0%	-297.1%	-198	-198	45	(18)	-34	-137	-121
2028	155	132.6%	-193.6%	-301	-301	105	(56)	-92	-160	-130
2029	324	109.0%	-90.2%	-292	-292	219	(148)	-176	-45	-33
2030	690	112.6%	13.3%	92	73	466	(379)	-381	541	372
2031	699	1.4%	13.3%	93	74	473	(449)	-10	107	68
2032	711	1.7%	13.3%	95	75	481	(523)	-12	45	26
2033	726	2.0%	13.3%	97	76	491	(601)	-15	-19	-10
2034	743	2.4%	13.3%	99	78	502	(684)	-18	-86	-42
2035	763	2.7%	13.3%	102	80	516	(773)	-21	-157	-71

Enterprise Value Bridge

Sum of PV(FCFF)-36

Terminal Value (Gordon Growth at 3.0%)0

PV of Terminal Value0

Enterprise Value-36

(–) Net Debt-584

Equity Value548

(÷) Shares Outstanding169

Fair Value per Share$3.25

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.3%	10.3%	13.3%	16.3%	19.3%
6.7%	$2	$3	$3	$4	$4
7.7%	$2	$3	$3	$4	$4
8.7%	$2	$3	$3	$4	$4
9.7%	$2	$3	$3	$4	$4
10.7%	$3	$3	$3	$4	$4

Current price: $7.24. Green = undervalued, Red = overvalued.

Working Capital Assumption

Trading Multiples

Fair Value

$13.59

Market Price

$7.24

Upside / Downside

+87.7%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Wave Life Sciences Ltd. (WVE) has a fair value of $13.59 based on 4 comparable companies in the Biotechnology industry.

EV/Revenue Valuation — Biotechnology

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Wave Life Sciences Ltd.WVE	1,221	14.9x	18.6x
Intellia Therapeutics, Inc.NTLA	1,571	22.3x	25.7x
Amylyx Pharmaceuticals, Inc.AMLX	1,315	14.2x	—
Precigen, Inc.PGEN	1,259	127.4x	10.7x
Zenas BioPharma, Inc.ZBIO	994	96.3x	102.6x
Industry Median		59.3x	25.7x
(*) Revenue		43	34
= Enterprise Value		2,534	881
(-) Net Debt		-584	-584
Equity Value		3,118	1,465
(/) Outstanding shares		169	169
Fair Price		$18	$9

Selected Fair Value (avg of trailing + forward)

$13.59

+87.7%