There is no excess cash in cannabis. With perhaps one or two exceptions, any net cash (cash – debt) on a company’s balance sheet is needed to ensure survival or for investment and cannot be considered “excess” and returnable to shareholders.
In our effort to continue making our content even more relevant and useful to our audience, the comp table now computes enterprise value as the greater of market capitalization or market capitalization plus net debt. This is a middle road, which does not penalize companies that have high gross debt and high gross cash levels, but it also reflects that companies with high net cash levels will be using that cash in their operations.
We also walked through the implications of the many complex capital structures for cannabis companies, driven by warrants, options, convertible debt and pending acquisitions. Most companies have been adjusted for future dilution and debt levels by including in-the-money warrants, options, convertible debt and shares issued in pending acquisitions.
As with most comp tables, this tool provides a benchmark for private investors to evaluate existing and future investments as well as a menu for public investors to peruse. Tracking the multiples and estimates over time can show how the returns of the stock are decomposed in changes in expectations (sales and EBITDA estimates) and the cost of capital (i.e., multiples applied to those estimates).
It organizes companies into groups based on the main business model (vertically integrated operators, hemp/CBD, pharmaceutical, and ancillary products and services) and lists the market capitalization, enterprise value (EV), sales and EBITDA estimates, and the EV/sales and EV/EBITDA multiples on those projections.
Nonmeaningful outliers are removed before the averages by group are calculated.
We are continuing to improve the comp table, and planning some more changes in the coming weeks. Are there companies missing from this table? A metric you believe is relevant to include? A feature you’d like to see?
Email us at investorintelligence@mjbizdaily.com and let us know.
Download the PDF or the sortable spreadsheet for more details on each company, including estimates for 2020 and 2021.
Priced as of Dec. 17, 2019.
| Name | Ticker | Market Cap | Enterprise Value | EV/Sales 2020E | EV/EBITDA 2020E | Sales 2020E | Sales Growth 2020E | EBITDA Margin 2020E |
| Vertically Integrated Operators | ||||||||
| 48North Cannabis Corp. | NCNNF | $ 47 | $ 47 | 4.7X | 19.0X | $ 10 | 181% | 9% |
| 4Front Ventures Corp. | FFNTF | $ 210 | $ 255 | 5.5X | 12.7X | $ 47 | 153% | 17% |
| Acreage Holdings Inc. | ACRGF | $ 821 | $ 821 | 5.1X | 24.0X | $ 162 | 143% | 9% |
| Aphria Inc. | APHA-TSE | $ 1,305 | $ 1,305 | 3.9X | 20.8X | $ 331 | 60% | 12% |
| Aurora Cannabis Inc. | ACB | $ 2,429 | $ 2,779 | 10.9X | n.m. | $ 256 | 84% | 0% |
| CannTrust Holdings Inc. | TRST-CA | $ 153 | $ 153 | 4.2X | n.m. | $ 36 | 50% | -18% |
| Canopy Growth Corp. | CGC | $ 7,715 | $ 7,715 | 27.4X | n.m. | $ 282 | 84% | -40% |
| Cansortium Inc. | CNTMF | $ 83 | $ 172 | 5.7X | 6.9X | $ 30 | 215% | 27% |
| Columbia Care Inc. | CCHWF | $ 616 | $ 616 | 7.5X | 11.9X | $ 82 | 287% | 16% |
| Cresco Labs Inc. | CRLBF-US | $ 2,612 | $ 2,612 | 19.8X | 17.3X | $ 132 | 330% | 27% |
| Cronos Group Inc. | CRON | $ 2,580 | $ 2,580 | n.m. | n.m. | $ 36 | 244% | -36% |
| Curaleaf Holdings Inc. | CURLF | $ 3,982 | $ 4,065 | 17.1X | 15.5X | $ 238 | 293% | 28% |
| Flowr Corp. | FLWPF | $ 173 | $ 173 | 19.3X | 37.1X | $ 9 | 743% | 6% |
| Green Organic Dutchman Holdings Ltd. | TGODF | $ 158 | $ 158 | 14.3X | n.m. | $ 11 | 509% | -14% |
| Green Thumb Industries Inc. | GTBIF | $ 1,666 | $ 1,728 | 8.0X | 14.0X | $ 217 | 119% | 26% |
| GTEC Holdings Ltd. | GTEC-TSX | $ 16 | $ 21 | 3.7X | 1.0X | $ 6 | 645% | 52% |
| Harvest Health & Recreation Inc. | HRVSF | $ 913 | $ 1,056 | 8.9X | 7.6X | $ 119 | 447% | 21% |
| Harvest One Cannabis Inc. | HRVOF | $ 22 | $ 22 | 1.5X | 33.1X | $ 15 | 153% | 2% |
| HEXO Corp. | HEXO | $ 544 | $ 544 | 11.4X | n.m. | $ 48 | 95% | -26% |
| iAnthus Capital Holdings Inc. | ITHUF | $ 232 | $ 336 | 3.7X | 7.4X | $ 91 | 184% | 18% |
| Medicine Man Technologies Inc. | MDCL | $ 275 | $ 383 | 2.3X | 10.7X | $ 170 | 5% | 20% |
| MedMen Enterprises Inc. | MMNFF | $ 415 | $ 914 | 5.2X | n.m. | $ 176 | 61% | -11% |
| MJardin Group Inc. | MJARF | $ 11 | $ 148 | 5.7X | 25.0X | $ 26 | 84% | 12% |
| OrganiGram Holdings Inc. | OGI | $ 403 | $ 404 | 5.3X | 11.0X | $ 77 | 70% | 28% |
| Planet 13 Holdings Inc. | PLNHF | $ 240 | $ 240 | 3.7X | 8.7X | $ 64 | 46% | 29% |
| Tilray Inc. | TLRY | $ 1,998 | $ 2,278 | 13.1X | n.m. | $ 174 | 79% | -12% |
| Trulieve Cannabis Corp. | TCNNF | $ 1,148 | $ 1,220 | 4.9X | 7.6X | $ 250 | 59% | 40% |
| Village Farms International Inc. | VFF | $ 318 | $ 392 | 2.0X | 7.0X | $ 192 | 39% | 21% |
| Vireo Health International Inc. | VREOF | $ 97 | $ 97 | 3.1X | 6.6X | $ 31 | 203% | 16% |
| WeedMD Inc. | WMD-CA | $ 65 | $ 85 | 3.9X | 4.8X | $ 22 | 281% | 22% |
| Average – Vertically Integrated Operators | $ 1,042 | $ 1,111 | 8.0X | 14.1X | $ 111 | 198% | 10% | |
| Name | Ticker | Market Cap | Enterprise Value | EV/Sales 2020E | EV/EBITDA 2020E | Sales 2020E | Sales Growth 2020E | EBITDA Margin 2020E |
| Hemp / CBD | ||||||||
| cbdMD Inc. | YCBD | $ 80 | $ 80 | 0.9X | n.m. | $ 91 | 147% | -2% |
| Charlotte’s Web Holdings Inc. | CWBHF | $ 877 | $ 877 | 6.0X | 47.6X | $ 147 | 48% | 13% |
| CV Sciences Inc. | CVSI | $ 127 | $ 127 | 1.7X | 8.9X | $ 75 | 34% | 19% |
| Elixinol Global Ltd. | ELLXF | $ 73 | $ 73 | 2.1X | n.m. | $ 34 | 31% | -26% |
| Emerald Health Therapeutics Inc. | EMHTF | $ 36 | $ 52 | 1.2X | n.m. | $ 44 | 77% | -34% |
| Green Growth Brands Inc. | GGBXF | $ 211 | $ 311 | 1.4X | 13.4X | $ 223 | 282% | 10% |
| Neptune Wellness Solutions Inc. | NEPT-CA | $ 263 | $ 263 | 2.9X | 11.7X | $ 91 | 235% | 25% |
| Average – Hemp / CBD | $ 238 | $ 255 | 2.3X | 20.4X | $ 101 | 122% | 1% | |
| Name | Ticker | Market Cap | Enterprise Value | EV/Sales 2020E | EV/EBITDA 2020E | Sales 2020E | Sales Growth 2020E | EBITDA Margin 2020E |
| Pharmaceutical | ||||||||
| Arena Pharmaceuticals Inc. | ARNA | $ 2,449 | $ 2,449 | n.m. | n.m. | $ 12 | -99% | n.m. |
| Cara Therapeutics Inc. | CARA | $ 808 | $ 808 | 30.4X | n.m. | $ 27 | 28% | n.m. |
| Corbus Pharmaceuticals Holdings Inc. | CRBP | $ 331 | $ 331 | 33.2X | n.m. | $ 10 | -74% | n.m. |
| GW Pharmaceuticals Plc | GWPH | $ 3,259 | $ 3,259 | 6.0X | n.m. | $ 547 | 81% | 11% |
| MediPharm Labs Corp. | MEDIF | $ 343 | $ 343 | 2.0X | 7.0X | $ 172 | 60% | 28% |
| Ultragenyx Pharmaceutical Inc. | RARE | $ 2,595 | $ 2,595 | 13.7X | n.m. | $ 189 | 89% | -177% |
| Zynerba Pharmaceuticals Inc. | ZYNE | $ 145 | $ 145 | n.m. | n.m. | $ – | n.m. | n.m. |
| Average – Pharmaceutical | $ 1,419 | $ 1,419 | 17.1X | 7.0X | $ 137 | 14% | -46% | |
| Name | Ticker | Market Cap | Enterprise Value | EV/Sales 2020E | EV/EBITDA 2020E | Sales 2020E | Sales Growth 2020E | EBITDA Margin 2020E |
| Ancillary Products & Services | ||||||||
| Akerna Corp. | KERN-USA | $ 142 | $ 142 | 5.6X | n.m. | $ 26 | 50% | n.m. |
| Canopy Rivers Inc. | CNPOF | $ 179 | $ 179 | 13.8X | 2.9X | $ 13 | -2% | 469% |
| Greenlane Holdings Inc. | GNLN | $ 122 | $ 122 | 0.6X | n.m. | $ 191 | 2% | -3% |
| Innovative Industrial Properties Inc. | IIPR | $ 1,022 | $ 848 | 8.8X | 10.6X | $ 96 | 136% | 84% |
| KushCo Holdings Inc. | KSHB | $ 172 | $ 200 | 0.8X | n.m. | $ 257 | 47% | 0% |
| MediPharm Labs Corp. | LABS-CA | $ 340 | $ 340 | 2.0X | 7.0X | $ 172 | 60% | 28% |
| New Age Beverages Corp. | NBEV | $ 145 | $ 160 | 0.5X | n.m. | $ 295 | 13% | -1% |
| Scotts Miracle-Gro Co. | SMG | $ 5,934 | $ 7,567 | 2.3X | 12.8X | $ 3,345 | 5% | 18% |
| Supreme Cannabis Co. Inc. | FIRE-CA | $ 171 | $ 210 | 2.1X | 12.1X | $ 102 | 99% | 17% |
| Valens GroWorks Corp. | VGWCF | $ 310 | $ 310 | 2.4X | 5.2X | $ 132 | 167% | 45% |
| Average – Ancillary Products & Services | $ 854 | $ 1,008 | 3.9X | 8.4X | $ 463 | 58% | 73% | |
Source: FactSet financial data and analytics, company filings.
