OUR 9TH YEAR OF PROVIDING PROPRIETARY CAPITAL MARKETS INTELLIGENCE ON THE CANNABIS / HEMP / PSYCHEDELIC SECTORS

Valuation Tracker By Industry Sector

Valuation Tracker By Sector

The Viridian Value Tracker is the most comprehensive valuation product in the industry.

    • 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 03/24/2023

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 recent bank failures prompted us to look at the valuations of the Real Estate sector which is composed of cannabis lenders and providers of sales leasebacks.  The median market to book ratio of the 11 companies in our database is no ony .71x compared to 1.4x a year ago. This demonstrates an unease in the value of their underlying assets, based on upticks in reserves for loan losses and defaults.  The key question one might ask is whether this will deter them from being able to raise capital with which to lend to cannabis companies.

Week ended 03/24/2023

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 recent bank failures prompted us to look at the valuations of the Real Estate sector which is composed of cannabis lenders and providers of sales leasebacks.  The median market to book ratio of the 11 companies in our database is no ony .71x compared to 1.4x a year ago. This demonstrates an unease in the value of their underlying assets, based on upticks in reserves for loan losses and defaults.  The key question one might ask is whether this will deter them from being able to raise capital with which to lend to cannabis companies.

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