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 02/14/2025
Sector Valuation – Cultivation & Retail- the world against the U.S.
- It is striking to look at the overall valuation metrics of the Cultivation & Retail sector because it shows how discounted U.S. companies are.
- The worldwide sector has 29 companies with 2025 EBITDA estimates, and the median EV/2025 EBITDA is 6.49x. The U.S. has 19 companies with 2025 EBITDA estimates, and the median EV/EBITDA value is only 4.11x.
- This gap is not entirely unwarranted. The two key drivers of the discount are that 1) due to 280e less of each $1 of U.S. EBITDA becomes free cash flow, and 2) the U.S. companies trade on junior exchanges with significantly less volume, thereby attracting significantly less institutional investment. We can bemoan these differences, but they are real.
Week ended 02/14/2025
Sector Valuation – Cultivation & Retail- the world against the U.S.
- It is striking to look at the overall valuation metrics of the Cultivation & Retail sector because it shows how discounted U.S. companies are.
- The worldwide sector has 29 companies with 2025 EBITDA estimates, and the median EV/2025 EBITDA is 6.49x. The U.S. has 19 companies with 2025 EBITDA estimates, and the median EV/EBITDA value is only 4.11x.
- This gap is not entirely unwarranted. The two key drivers of the discount are that 1) due to 280e less of each $1 of U.S. EBITDA becomes free cash flow, and 2) the U.S. companies trade on junior exchanges with significantly less volume, thereby attracting significantly less institutional investment. We can bemoan these differences, but they are real.
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