OUR 9TH YEAR OF PROVIDING PROPRIETARY CAPITAL MARKETS INTELLIGENCE ON THE CANNABIS / HEMP / PSYCHEDELIC SECTORS
OUR 9TH YEAR OF PROVIDING PROPRIETARY CAPITAL MARKETS INTELLIGENCE ON THE CANNABIS / HEMP / PSYCHEDELIC SECTORS
Home » Week of 1/8/24-1/12/24
The Viridian Value Tracker is the most comprehensive valuation product in the industry.
Our sector trackers include ratios applicable to value companies with no analyst coverage and the more typical EV/ Revenues and EV/ EBITDA measures. For each valuation measure, we present the values for the lowest 25% of companies, the median, and the highest 25%. This gives investors a better understanding of the spread of values than a simple average, often presented but frequently seriously flawed by outliers. The Hemp sector received little love in 2023, but valuation metrics have swung upwards meaningfully in 2024. The median market to book was .55x at year-end and swung up only marginally to .59x on 1/12/24. EV/ annualized revenues increased from .98x at year-end to 1.44x. The HHS rescheduling review that was published in full this week took great care to differentiate THC cannabis from Hemp and hemp-derived products, so catalysts relating to rescheduling shouldn’t affect the hemp industry, which is focused on the provisions of the new Farm Bill, indefinitely delayed in Congress.
Our sector trackers include ratios applicable to value companies with no analyst coverage and the more typical EV/ Revenues and EV/ EBITDA measures. For each valuation measure, we present the values for the lowest 25% of companies, the median, and the highest 25%. This gives investors a better understanding of the spread of values than a simple average, often presented but frequently seriously flawed by outliers. The Hemp sector received little love in 2023, but valuation metrics have swung upwards meaningfully in 2024. The median market to book was .55x at year-end and swung up only marginally to .59x on 1/12/24. EV/ annualized revenues increased from .98x at year-end to 1.44x. The HHS rescheduling review that was published in full this week took great care to differentiate THC cannabis from Hemp and hemp-derived products, so catalysts relating to rescheduling shouldn’t affect the hemp industry, which is focused on the provisions of the new Farm Bill, indefinitely delayed in Congress.
*Marijuana remains illegal under federal law. The Federal Government does not recognize marijuana to have any medicinal values. Marijuana cultivation, possession, consumption, sales, and distribution are illegal under federal laws and also certain state laws. Please note that there are differences in marijuana laws from one state, county, or city to another.
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