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 12/09/2022
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.
Week ended 12/09/2022
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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