| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 84.95 | 1582 |
| Intrinsic value (DCF) | 3.51 | -30 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 13.07 | 159 |
Eco Wave Power Global AB (publ) (NASDAQ: WAVE) is a pioneering wave energy company specializing in the development of innovative Wave Energy Conversion (WEC) technology. Headquartered in Tel Aviv-Yafo, Israel, the company converts ocean and sea waves into clean electricity, offering a sustainable alternative to traditional energy sources. Eco Wave Power operates a grid-connected wave energy array in Gibraltar under a power purchase agreement and has a global project pipeline of approximately 327.7 megawatts across Sweden, Israel, Portugal, China, Australia, and Mexico. Founded in 2011, the company is at the forefront of renewable energy innovation, leveraging agreements such as power purchase and concession agreements to expand its footprint. With a focus on scalability and environmental impact, Eco Wave Power is positioned as a key player in the emerging wave energy sector, contributing to the global transition toward renewable utilities.
Eco Wave Power presents a high-risk, high-reward investment opportunity in the nascent wave energy sector. The company's innovative WEC technology and project pipeline (327.7 MW) demonstrate long-term potential, but its financials reveal significant challenges, including negative net income (-$2.08M) and operating cash flow (-$1.82M). While its $7.85M cash position provides short-term runway, the capital-intensive nature of renewable energy projects and unproven commercial scalability pose risks. The stock's negative beta (-0.513) suggests low correlation with broader markets, which may appeal to speculative investors seeking diversification in alternative energy. Success hinges on securing additional funding, expanding its Gibraltar pilot, and converting its pipeline into revenue-generating assets.
Eco Wave Power competes in the niche but growing wave energy segment of renewable utilities. Its competitive advantage lies in its patented WEC technology, which is designed for near-shore deployment—reducing installation and maintenance costs compared to offshore solutions. The company's Gibraltar project serves as a proof of concept, but its small scale (limited revenue: $168K) highlights commercialization challenges. Unlike solar or wind energy, wave energy lacks established infrastructure and policy support, slowing adoption. Eco Wave Power's partnerships with governments (e.g., Gibraltar, Portugal) provide credibility, but its limited revenue and high R&D costs make it vulnerable to better-funded competitors or alternative renewables. The company's focus on modular, grid-connected systems differentiates it from bulkier offshore wave energy projects, but scalability remains unproven. Its pipeline (327.7 MW) suggests ambition, but execution risk is high given the sector's immaturity and reliance on regulatory approvals.