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 12/5/22-12/9/22
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. The median market-to-tangible book value for the 103 Cultivation & Retail sector companies in the Viridian Capital database is now .37x, down from 90x last week, although the comparison is skewed by the addition of six new companies to the data. Nonetheless the level of this ratio indicates continuing potential for write-offs to intangible assets like goodwill. We have already seen significant write-offs of this nature, particularly in Canadian companies that added excess cultivation capacity.
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 median market-to-tangible book value for the 103 Cultivation & Retail sector companies in the Viridian Capital database is now .37x, down from 90x last week, although the comparison is skewed by the addition of six new companies to the data. Nonetheless the level of this ratio indicates continuing potential for write-offs to intangible assets like goodwill. We have already seen significant write-offs of this nature, particularly in Canadian companies that added excess cultivation capacity.
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