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 03/28/2025
Sector Valuation – Infused Products & Extracts Sector
- The 42 companies in the Biotech sector defy valuation by revenues or EBITDA metrics. Only 7 of these companies have annual revenues exceeding $10M.
- Although the sector includes several multi-billion market cap companies like Jazz Pharmaceuticals (JAZZ: Nasdaq), most competitors are pretty small. The median market cap of the group is only $9.59M.
- One of the few metrics that makes sense is the market-to-book ratio. We would expect a discount here as spending through clinical trials depletes book equity until, hopefully, a blockbuster new drug rightens the ship. The median market-to-book ratio is 0.52x, but ¼ of the companies trade at more than 3.74x. This sector lacks the homogeneity to be valued adequately by comparable metrics.
Week ended 03/28/2025
Sector Valuation – Infused Products & Extracts Sector
- The 42 companies in the Biotech sector defy valuation by revenues or EBITDA metrics. Only 7 of these companies have annual revenues exceeding $10M.
- Although the sector includes several multi-billion market cap companies like Jazz Pharmaceuticals (JAZZ: Nasdaq), most competitors are pretty small. The median market cap of the group is only $9.59M.
- One of the few metrics that makes sense is the market-to-book ratio. We would expect a discount here as spending through clinical trials depletes book equity until, hopefully, a blockbuster new drug rightens the ship. The median market-to-book ratio is 0.52x, but ¼ of the companies trade at more than 3.74x. This sector lacks the homogeneity to be valued adequately by comparable metrics.
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