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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.

    • 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 01/10/2025

Sector Valuation – Cultivation and Retail –  What Does Bottom of the Cycle Valuation look like?

    • The Chart below shows up in our weekly tracker report but bears reprinting here.  We find it remarkable that valuation multiples for top-tier US MSOs are now significantly lower than on 8/25/23, the Friday before the HHS announced it was recommending S3. Yeah, we definitely got that one wrong because we couldn’t conceive of a set of circumstances where we would be trading lower than then, but here we are.
    • Overall, the 82 companies we track in the sector are trading at a median market-to-book of .62x, EV / 2025 EBITDA of 4.64x, and Adj. EV/ 2025 EBITDAR of 6.17x. Mark those numbers; we will be surprised if we see much lower prints than these. The catalyst upside potential is as apparent as the timing is unknown. Not a time to bail, IMHO.

Week ended 01/10/2025

Sector Valuation – Cultivation and Retail –  What Does Bottom of the Cycle Valuation look like?

    • The Chart below shows up in our weekly tracker report but bears reprinting here.  We find it remarkable that valuation multiples for top-tier US MSOs are now significantly lower than on 8/25/23, the Friday before the HHS announced it was recommending S3. Yeah, we definitely got that one wrong because we couldn’t conceive of a set of circumstances where we would be trading lower than then, but here we are.
    • Overall, the 82 companies we track in the sector are trading at a median market-to-book of .62x, EV / 2025 EBITDA of 4.64x, and Adj. EV/ 2025 EBITDAR of 6.17x. Mark those numbers; we will be surprised if we see much lower prints than these. The catalyst upside potential is as apparent as the timing is unknown. Not a time to bail, IMHO.

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