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 09/01/2023
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 believe the Agriculture Technology sector should be an indirect beneficiary of cannabis rescheduling. Although the sector is not exposed to 280e, its customers, the MSOs, are. As the MSOs become more cash-positive and cannabis capital markets start to reopen, the MSOs’ ability and inclination to ramp up capex should follow, producing higher revenues for soils, fertilizers, lighting, etc. We see tentative evidence of this trend in the market-to-book ratios of the 19 Agriculture Technology sector companies, with a median of 61x this week vs.44x last week.
Week ended 09/01/2023
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 believe the Agriculture Technology sector should be an indirect beneficiary of cannabis rescheduling. Although the sector is not exposed to 280e, its customers, the MSOs, are. As the MSOs become more cash-positive and cannabis capital markets start to reopen, the MSOs’ ability and inclination to ramp up capex should follow, producing higher revenues for soils, fertilizers, lighting, etc. We see tentative evidence of this trend in the market-to-book ratios of the 19 Agriculture Technology sector companies, with a median of 61x this week vs.44x last week.
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