Weekly Valuation Tracker
Viridian highlights a specific industry sector and provides a deep dive into valuation metrics and comparable company valuations for public companies operating in that sector. The Weekly Valuation Tracker provides proprietary, actionable valuation data.
Weekly Valuation Report – Where are the top MSOs valued after 1st quarter earnings and subsequent analyst revisions?
- The table below shows the valuation metrics for the seventeen U.S. MSOs with market caps over $20M. We have omitted Vireo Growth, due to the difficulty of adequately creating proforma roll-up results.
- Note the bottom row of the table labeled “IQR/Median.” This is a measure of the spread of the data around the median. Lower numbers indicate a tighter grouping around the median, indicating that the market is basing valuation more closely on that metric than on others. In this case, the lowest IQR/median is for EV/2025 EBITDA.
- The top MSOs are now trading at a median of 4.23x 2025 EBITDA and .93x 2025 Revenues. These stats are up from 3.84x and .87x, respectively, at year-end 2024.
- We continue to believe the analysts are too optimistic about the 2nd half of 2025, projecting both y/o/y revenue and EBITDA gains compared to declines in the last two reported quarters. Valuations have improved even more if we take into account potentially inflated denominators for the valuation metrics.
- Still, any real upswing in valuation remains hostage to actions in Washington, which we will refrain from predicting.
- Is the industry super cheap? Yes, but it is also overleveraged and challenged by a low-growth price-compressed environment with increasingly strained consumers.
- For a more detailed look at the valuation of the individual companies behind the above states, see the Viridian Weekly Valuation Tracker report.
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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.
Sector Valuation – The Psychedelics sector has outperformed plant-touching cannabis sectors YTD. However, valuation measures remain constrained by the industry’s key weakness: liquidity.
- The sector is now trading at 1.80x Market/Book and .97x market to tangible book value, up from .94x and .85x, respectively, at year-end of 2024.
- Liquidity remains critically tight, however, with median free cash flow adjusted current ratio of 0.0x compared to .16x at year end 2024. More than half of the sector participants will require additional funding to pay their current liabilities during the year. Interestingly, the top 25% have ratios above 4.25x, indicating adequate funding for over a year.
- See the Viridian Sector valuation section of the weekly sector tracker for more detail and a wide range of valuation metrics with quartiles and median measures.
This Chart is Only Available to Higher Tier Memberships
Please Purchase a Premium or Enterprise membership to see more.
Sector Valuation – The Psychedelics sector has outperformed plant-touching cannabis sectors YTD. However, valuation measures remain constrained by the industry’s key weakness: liquidity.
- The sector is now trading at 1.80x Market/Book and .97x market to tangible book value, up from .94x and .85x, respectively, at year-end of 2024.
- Liquidity remains critically tight, however, with median free cash flow adjusted current ratio of 0.0x compared to .16x at year end 2024. More than half of the sector participants will require additional funding to pay their current liabilities during the year. Interestingly, the top 25% have ratios above 4.25x, indicating adequate funding for over a year.
- See the Viridian Sector valuation section of the weekly sector tracker for more detail and a wide range of valuation metrics with quartiles and median measures.
