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 06/09/2023
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. We note that the Real Estate sector, which contains providers of loans and sale-leasebacks to the cultivation sector, is now trading at a median of only .74x book value. Even the highest 25 percent of the 11 companies only trade at .91x book value. This discount is likely driven by two factors: a portfolio with a significant fixed rate component in an environment where rates are now higher and developing cracks in the credit strength of the borrowers. Market-to-book and market-to-tangible-book ratios of the real estate sector are good indicators of market perceptions of the financial health of the cultivation sector.
Week ended 06/09/2023
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. We note that the Real Estate sector, which contains providers of loans and sale-leasebacks to the cultivation sector, is now trading at a median of only .74x book value. Even the highest 25 percent of the 11 companies only trade at .91x book value. This discount is likely driven by two factors: a portfolio with a significant fixed rate component in an environment where rates are now higher and developing cracks in the credit strength of the borrowers. Market-to-book and market-to-tangible-book ratios of the real estate sector are good indicators of market perceptions of the financial health of the cultivation sector.
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