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 08/16/2024
Weekly Sector Valuation Report – Biotech/Pharma
- The 46-member Biotech/Pharma sector has the widest dispersion of valuation metrics of any sector we follow.
- The median market / Book ratio is 1.43x. However, 25% of the companies have lower than -.52x, and 25% have higher than 5.14x.
- Similarly, of the 11 companies with sell-side coverage, the median EV/ 2024 revenue is 10.86x, but 25% of the companies are below 2.06x, and 25% are above 38.55x!
- In cases such as this, we look at the ratio of the interquartile range to the median. This ratio measures how widely the data is spread around the median. The measure with the lowest ratio has the tightest grouping of observations around the median. Market to Book is the tightest grouping and, therefore, our preferred valuation metric for this group.
Week ended 08/16/2024
Weekly Sector Valuation Report – Biotech/Pharma
- The 46-member Biotech/Pharma sector has the widest dispersion of valuation metrics of any sector we follow.
- The median market / Book ratio is 1.43x. However, 25% of the companies have lower than -.52x, and 25% have higher than 5.14x.
- Similarly, of the 11 companies with sell-side coverage, the median EV/ 2024 revenue is 10.86x, but 25% of the companies are below 2.06x, and 25% are above 38.55x!
- In cases such as this, we look at the ratio of the interquartile range to the median. This ratio measures how widely the data is spread around the median. The measure with the lowest ratio has the tightest grouping of observations around the median. Market to Book is the tightest grouping and, therefore, our preferred valuation metric for this group.
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