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 01/05/2024
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 Infused Products and Extracts sector has the lowest median market-to-book ratio of the twelve sectors we track at -0.77x. This indicates that over ½ of the 18 companies have negative book equity. The projected 2023 EBITDA is negative for even the highest quartile, making this metric unusable for valuation. The spread in measures of EV/ annualized revenues is extreme, ranging from .94x for the lowest quartile to 11x for the highest quartile. Interestingly, a sector with such poor balance sheets and negative EBITDA can still trade at reasonably large revenue multiples.
Week ended 01/05/2024
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 Infused Products and Extracts sector has the lowest median market-to-book ratio of the twelve sectors we track at -0.77x. This indicates that over ½ of the 18 companies have negative book equity. The projected 2023 EBITDA is negative for even the highest quartile, making this metric unusable for valuation. The spread in measures of EV/ annualized revenues is extreme, ranging from .94x for the lowest quartile to 11x for the highest quartile. Interestingly, a sector with such poor balance sheets and negative EBITDA can still trade at reasonably large revenue multiples.
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