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 01/12/2024
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 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.
Week ended 01/12/2024
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 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.
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