OUR 9TH YEAR OF PROVIDING PROPRIETARY CAPITAL MARKETS INTELLIGENCE ON THE CANNABIS / HEMP / PSYCHEDELIC SECTORS
OUR 9TH YEAR OF PROVIDING PROPRIETARY CAPITAL MARKETS INTELLIGENCE ON THE CANNABIS / HEMP / PSYCHEDELIC SECTORS
Home » Week of 12/4/23-12/8/23
The Viridian Value Tracker is the most comprehensive valuation product in the industry.
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. Valuations in the Hemp sector have picked up since the end of the third quarter. The median market-to-book ratio is now .56x, up from .44x at 9/30/23.
Similarly, median EV/annualized revenue is now 1.27x, up slightly from 1.21x. The sector is anxiously awaiting the passage of a new farm bill, and hopes are high that the issue of “hot hemp” will be dealt with by an increase in the THC limit to 1%. The treatment of delta 8 remains a significant question.
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. Valuations in the Hemp sector have picked up since the end of the third quarter. The median market-to-book ratio is now .56x, up from .44x at 9/30/23.
Similarly, median EV/annualized revenue is now 1.27x, up slightly from 1.21x. The sector is anxiously awaiting the passage of a new farm bill, and hopes are high that the issue of “hot hemp” will be dealt with by an increase in the THC limit to 1%. The treatment of delta 8 remains a significant question.
*Marijuana remains illegal under federal law. The Federal Government does not recognize marijuana to have any medicinal values. Marijuana cultivation, possession, consumption, sales, and distribution are illegal under federal laws and also certain state laws. Please note that there are differences in marijuana laws from one state, county, or city to another.
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