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 05/16/2025
Sector Valuation – Cultivation & Retail sector
- The 28 companies with sell-side analyst coverage now trade at a median of 5.1x, and as we showed above, this multiple is significantly higher for Canadian companies. Our preferred valuation metric is Adj. EV/ EBITDAR. We believe that operating leases should be treated as debt, and we also believe that the 280E tax liabilities that companies accrue but do not pay should also be counted as debt. Accordingly, the adjusted ratio is higher, with a median value of 6.58x. The difference between this value and the standard calculation has tended to widen over time as increasing amounts of unpaid 280E taxes are warehoused on the balance sheets of U.S. companies.
- Market-to-book ratios for the sector continue to be low, with a current median of .54x. This indicates that the market expects further write-offs of intangibles from acquisitions over the last few years.
Week ended 05/16/2025
Sector Valuation – Cultivation & Retail sector
- The 28 companies with sell-side analyst coverage now trade at a median of 5.1x, and as we showed above, this multiple is significantly higher for Canadian companies. Our preferred valuation metric is Adj. EV/ EBITDAR. We believe that operating leases should be treated as debt, and we also believe that the 280E tax liabilities that companies accrue but do not pay should also be counted as debt. Accordingly, the adjusted ratio is higher, with a median value of 6.58x. The difference between this value and the standard calculation has tended to widen over time as increasing amounts of unpaid 280E taxes are warehoused on the balance sheets of U.S. companies.
- Market-to-book ratios for the sector continue to be low, with a current median of .54x. This indicates that the market expects further write-offs of intangibles from acquisitions over the last few years.
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