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 12/01/2023
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. Cultivation and Retail sector valuations have been recovering, with the MSOS ETF registering its fifth consecutive weekly rise. However, overall valuation levels are still down significantly from a year ago. Median market-to-book ratios are now .42x compared to .56x a year ago, and EV/EBITDA for the year ending December 31 is 5.89x compared to 6.49x a year ago. Another interesting tidbit is the group of 103 companies in the sector has dwindled to 84 companies, primarily through mergers but to a lesser extent through failures. IPOs, RTOs, and de-spaces have been virtually absent from the market for 18 months, so no new companies are replacing the departed ones.
Week ended 12/01/2023
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. Cultivation and Retail sector valuations have been recovering, with the MSOS ETF registering its fifth consecutive weekly rise. However, overall valuation levels are still down significantly from a year ago. Median market-to-book ratios are now .42x compared to .56x a year ago, and EV/EBITDA for the year ending December 31 is 5.89x compared to 6.49x a year ago. Another interesting tidbit is the group of 103 companies in the sector has dwindled to 84 companies, primarily through mergers but to a lesser extent through failures. IPOs, RTOs, and de-spaces have been virtually absent from the market for 18 months, so no new companies are replacing the departed ones.
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