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 02/28/2025
Sector Valuation – Cultivation & Retail
- The Viridian Sector Valuation Report shows that the median EV/ 2025 EBITDA multiple is now only 4.24x, and only 25% of the group is above 6.5x. Note also that the estimates overstate the multiples of U.S. competitors, who tend to trade at lower multiples than their Canadian peers. The reason is probably twofold: a dollar of U.S. EBITDA becomes less than a dollar of Canadian EBITDA by the time it gets to the cash flow line due to 280e. Also, Canadians benefit from trading on senior exchanges where liquidity is higher.
- Our bespoke valuation ratio of Adjusted EV/ 2025 EBITDAR makes the sector look less cheap, unfortunately for less than desirable reasons. Our adjusted EV adds into debt and EV all leases and the uncertain tax liabilities of the U.S. companies, which under this measure do not appear nearly so cheap.
Week ended 02/28/2025
Sector Valuation – Cultivation & Retail
- The Viridian Sector Valuation Report shows that the median EV/ 2025 EBITDA multiple is now only 4.24x, and only 25% of the group is above 6.5x. Note also that the estimates overstate the multiples of U.S. competitors, who tend to trade at lower multiples than their Canadian peers. The reason is probably twofold: a dollar of U.S. EBITDA becomes less than a dollar of Canadian EBITDA by the time it gets to the cash flow line due to 280e. Also, Canadians benefit from trading on senior exchanges where liquidity is higher.
- Our bespoke valuation ratio of Adjusted EV/ 2025 EBITDAR makes the sector look less cheap, unfortunately for less than desirable reasons. Our adjusted EV adds into debt and EV all leases and the uncertain tax liabilities of the U.S. companies, which under this measure do not appear nearly so cheap.
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