OUR 9TH YEAR OF PROVIDING PROPRIETARY CAPITAL MARKETS INTELLIGENCE ON THE CANNABIS / HEMP / PSYCHEDELIC SECTORS
Quick
Links
Past Charts
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 12/22/2023
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. Hemp is an excellent example of the tremendous divergence in valuation ratios between the top 25% of companies and the bottom 25%. The median market-to-book ratio for the 46 company group is .59, but the range is enormous, with the lowest 25% at .05x and the highest 25% at 1.65x. The same is valid for revenue multiples with a median of 1.08x EV/annualized revenue but the lowest and highest quartile of .21x and 8.48x. Any attempt to base valuations in the sector on average metrics is doomed to failure.
Week ended 12/22/2023
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. Hemp is an excellent example of the tremendous divergence in valuation ratios between the top 25% of companies and the bottom 25%. The median market-to-book ratio for the 46 company group is .59, but the range is enormous, with the lowest 25% at .05x and the highest 25% at 1.65x. The same is valid for revenue multiples with a median of 1.08x EV/annualized revenue but the lowest and highest quartile of .21x and 8.48x. Any attempt to base valuations in the sector on average metrics is doomed to failure.
This Chart is Only Available to Higher Tier Memberships
Please Purchase a Premium or Enterprise membership to see more.
