OUR 9TH YEAR OF PROVIDING PROPRIETARY CAPITAL MARKETS INTELLIGENCE ON THE CANNABIS / HEMP / PSYCHEDELIC SECTORS
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Valuation Tracker By Industry Sector
Valuation Tracker By Sector
The Viridian Value Tracker is the most comprehensive valuation product in the industry.
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- A broad set of 12 valuation measures assures applicability, regardless of whether the company has analyst coverage or revenues. The typically presented EV/ Projected Revenues and EV/ Projected EBITDA are available for less than 1/3 of the cannabis companies we track.
- Most valuation studies present only the average valuation measures, while the Tracker goes one step further and shows the distribution of values (the quartiles, median, and dispersion) for each measure. This gives users a more complete view of how companies in the cohort group are valued.
Week ended 09/06/2024
Weekly Sector Valuation Report – Cultivation and Retail Sector
- We find the Cultivation and Retail segment valuation metrics to be confounding. Of the 36 companies with 2024 analysts’ estimates, the median EV/ 2024 Revenues is 1.15x, and the median EV/ 2024 EBITDA multiple is 6.20x. While these are not the lowest measures in history, they continue to be inexplicably low, given the regulatory progress towards S3, the re-emergence of SAFER Act discussions, and the fact that both candidates are supportive of further liberalization of cannabis laws. The debt market gets it. Lenders, including commercial banks, are becoming more aggressive, but equity investors are lagging.
- Trump’s positive remarks produced a temporary blip, but cannabis was missing as a debate topic, sending the sector right back into the doldrums.
Week ended 09/06/2024
Weekly Sector Valuation Report – Cultivation and Retail Sector
- We find the Cultivation and Retail segment valuation metrics to be confounding. Of the 36 companies with 2024 analysts’ estimates, the median EV/ 2024 Revenues is 1.15x, and the median EV/ 2024 EBITDA multiple is 6.20x. While these are not the lowest measures in history, they continue to be inexplicably low, given the regulatory progress towards S3, the re-emergence of SAFER Act discussions, and the fact that both candidates are supportive of further liberalization of cannabis laws. The debt market gets it. Lenders, including commercial banks, are becoming more aggressive, but equity investors are lagging.
- Trump’s positive remarks produced a temporary blip, but cannabis was missing as a debate topic, sending the sector right back into the doldrums.
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