Ayala Pharmaceuticals Inc (ADXS)

[DewDiligence]

Re: ADXS enterprise value

What is the current market cap?

A better question is: What is the current enterprise value? Enterprise value is defined as the market cap adjusted for the net cash or net debt on the balance sheet—i.e. it is a measure of how investors are currently valuing the company’s business per se.

There are currently 46.1M fully-diluted shares outstanding (including all warrants and options, whether or not they are vested or in-the-money). At 8/31/16 (the most recent reporting date), ADXS had $163M of cash and no debt.

Thus, at a share price of $9.80 (Friday’s close), the fully-diluted market cap is $452M and the enterprise value is $452M-$163M = $289M.

(The above calculation overstates the EV by not taking into account the cash that ADXS would receive on conversion of options and warrants, but this is a small item in the overall scheme of things. Moreover, the above calculation understates the EV by not taking into account the cash burn since 8/31/16. So, all told, the above calculation is not precise but it is accurate enough for valuation purposes.)