Cannabis comp tables as of Dec. 23

These comp tables provide a benchmark for private investors to evaluate existing and future investments, a way for companies to judge their own valuations for current and future capital raises and 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).

In our effort to continue making our content even more relevant and useful to our audience, the comp tables now organize companies into groups based on the main business model (U.S.-focused vertically integrated operators, Canada-focused vertically integrated operators, hemp/CBD, pharmaceutical as well as 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. Everything is converted, calculated and listed into U.S. dollars.

The U.S.-focused operators are currently trading at 2.4X 2020 sales and 12.0X 2020 EBITDA, while Canada-focused operators trade at a premium at 4.5X sales and 16.8X EBITDA.

The discount carries to 2021 as well at 1.6X sales and 6.4X EBITDA for the U.S.-focused versus 2.9X sales and 10.9X EBITDA for Canada-focused.

Nonmeaningful outliers are removed before the averages by group are calculated.

As we stated last week and at our Investor Intelligence Conference in early December, there is no excess cash in cannabis.

Thus, 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.

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.

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 [email protected] and let us know.

Download the PDF or the sortable spreadsheet for more details about each company, including estimates for 2020 and 2021.

Priced as of Dec. 23, 2019.

Name Ticker Market Cap Enterprise Value EV/Sales 2020E EV/EBITDA 2020E Sales 2020E Sales Growth 2020E EBITDA Margin 2020E
US-Focused Vertically Integrated Operators
4Front Ventures Corp. FFNTF  $          218  $            263 2.2X 13.1X  $         118 153% 17%
Acreage Holdings ACRGF  $          834  $            834 2.1X 24.3X  $         392 143% 9%
CannaRoyalty Corp. ORHOF  $          347  $            347 n.m. n.m.  n.m. n.m. n.m.
Cansortium CNTMF  $            36  $            126 1.3X 5.0X  $           95 215% 27%
Columbia Care CCHWF  $          660  $            660 2.1X 12.8X  $         318 287% 16%
Cresco Labs CRLBF-US  $       2,458  $         2,458 4.4X 17.0X  $         564 327% 26%
Curaleaf Holdings CURLF  $       3,958  $         4,040 4.3X 15.4X  $         934 293% 28%
Green Thumb Industries GTBIF  $       1,652  $         1,713 3.6X 13.9X  $         475 119% 26%
Harvest Health & Recreation HRVSF  $          934  $         1,078 1.7X 7.8X  $         651 447% 21%
iAnthus Capital Holdings ITHUF  $          227  $            330 1.3X 7.3X  $         258 184% 18%
Liberty Health Sciences LHSIF  $          148  $            154 n.m. n.m.  n.m. n.m. n.m.
Medicine Man Technologies MDCL  $          283  $            391 2.2X 10.9X  $         179 5% 20%
MedMen Enterprises MMNFF  $          355  $            854 3.0X n.m.  $         286 62% -10%
MJardin Group MJARF  $            15  $            152 3.2X 25.7X  $           48 84% 12%
Planet 13 Holdings PLNHF  $          256  $            256 2.7X 9.3X  $           93 46% 29%
SLANG Worldwide SLGWF-US  $            67  $               67 0.5X 3.2X  $         123 375% 17%
Trulieve Cannabis Corp. TCNNF  $       1,165  $         1,238 3.1X 7.7X  $         398 59% 40%
Vireo Health International VREOF  $            93  $               93 1.0X 6.3X  $           94 203% 16%
Average – US-Focused Vertically Integrated Operators  $          761  $            836 2.4X 12.0X  $         314 188% 19%
Name Ticker Market Cap Enterprise Value EV/Sales 2020E EV/EBITDA 2020E Sales 2020E Sales Growth 2020E EBITDA Margin 2020E
Canada-Focused Vertically Integrated Operators
48North Cannabis Corp. NCNNF  $            47  $               47 1.7X 19.3X  $           28 181% 9%
Aphria APHA-TSE  $       1,239  $         1,239 2.3X 19.8X  $         529 60% 12%
Aurora Cannabis ACB  $       2,078  $         2,427 5.6X n.m.  $         434 78% -3%
Auxly Cannabis Group XLY-CNQ  $          267  $            271 4.3X n.m.  $           63 n.m. -9%
CannTrust Holdings TRST-CA  $          144  $            144 2.7X n.m.  $           54 50% -18%
Canopy Growth Corp. CGC  $       7,375  $         7,375 14.3X n.m.  $         516 84% -40%
Cronos Group CRON  $       2,609  $         2,609 21.5X n.m.  $         122 237% -34%
Emerald Health Therapeutics EMHTF  $            40  $               56 1.3X n.m.  $           44 77% -34%
Flowr Corp. FLWPF  $          167  $            167 2.2X 35.9X  $           76 743% 6%
The Green Organic Dutchman Holdings TGODF  $          142  $            142 2.1X n.m.  $           67 509% -14%
GTEC Holdings GTEC-TSX  $            19  $               24 0.6X 1.1X  $           43 645% 52%
Harvest One Cannabis HRVOF  $            23  $               23 0.6X 35.7X  $           37 152% 2%
Hexo Corp. HEXO  $          497  $            497 5.4X n.m.  $           92 92% -25%
Organigram Holdings OGI  $          393  $            394 3.0X 10.8X  $         130 69% 28%
Tilray TLRY  $       1,913  $         2,193 7.0X n.m.  $         311 79% -12%
Village Farms International VFF  $          307  $            380 1.4X 6.8X  $         267 39% 21%
WeedMD WMD-CA  $            64  $               85 1.0X 4.7X  $           83 281% 22%
Average – Canada-Focused Vertically Integrated Operators  $       1,019  $         1,063 4.5X 16.8X  $         170 211% -2%
Name Ticker Market Cap Enterprise Value EV/Sales 2020E EV/EBITDA 2020E Sales 2020E Sales Growth 2020E EBITDA Margin 2020E
Hemp / CBD
cbdMD YCBD  $            79  $               79 0.9X n.m.  $           87 148% -5%
Charlotte’s Web Holdings CWBHF  $          836  $            836 5.7X 45.4X  $         147 48% 13%
CV Sciences CVSI  $          116  $            116 1.6X 8.2X  $           75 34% 19%
Elixinol Global ELLXF  $            51  $               51 1.5X n.m.  $           34 31% -26%
Emerald Health Therapeutics EMHTF  $            40  $               56 1.3X n.m.  $           44 77% -34%
Green Growth Brands GGBXF  $          229  $            329 1.5X 14.9X  $         222 282% 10%
Neptune Wellness Solutions NEPT-CA  $          264  $            264 2.9X 11.8X  $           91 235% 25%
Average – Hemp / CBD  $          231  $            247 2.2X 20.1X  $         100 122% 0%
Name Ticker Market Cap Enterprise Value EV/Sales 2020E EV/EBITDA 2020E Sales 2020E Sales Growth 2020E EBITDA Margin 2020E
Pharmaceutical
Arena Pharmaceuticals ARNA  $       2,492  $         2,492 n.m. n.m.  $           12 -99% n.m.
Cara Therapeutics CARA  $          806  $            806 30.4X n.m.  $           27 28% n.m.
Corbus Pharmaceuticals Holdings CRBP  $          353  $            353 39.5X n.m.  $             9 -76% n.m.
GW Pharmaceuticals GWPH  $       3,197  $         3,197 5.9X n.m.  $         546 81% 11%
MediPharm Labs Corp. MEDIF  $          365  $            365 2.1X 7.5X  $         172 60% 28%
Ultragenyx Pharmaceutical RARE  $       2,673  $         2,673 14.4X n.m.  $         185 85% -182%
Zynerba Pharmaceuticals ZYNE  $          141  $            141 n.m. n.m.  $            – n.m. n.m.
Average – Pharmaceutical  $       1,432  $         1,432 18.4X 7.5X  $         136 13% -48%
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  $          116  $            116 4.2X n.m.  $           28 115% -25%
Canopy Rivers CNPOF  $          171  $            171 13.3X 2.8X  $           13 -2% 469%
Greenlane Holdings GNLN  $          113  $            113 0.6X n.m.  $         191 2% -3%
Innovative Industrial Properties IIPR  $       1,048  $            873 9.1X 10.9X  $           96 136% 84%
KushCo Holdings KSHB  $          156  $            183 0.7X n.m.  $         257 47% 0%
MediPharm Labs Corp. LABS-CA  $          364  $            364 2.1X 7.5X  $         172 60% 28%
New Age Beverages Corp. NBEV  $          153  $            167 0.6X n.m.  $         295 13% -1%
Scotts Miracle-Gro Co. SMG  $       6,109  $         7,742 2.3X 13.1X  $     3,345 5% 18%
Supreme Cannabis Co. FIRE-CA  $          165  $            204 2.0X 11.8X  $         102 99% 17%
Valens GroWorks Corp. VGWCF  $          313  $            313 2.4X 5.3X  $         132 167% 45%
Average – Ancillary Products & Services  $          871  $         1,025 3.7X 8.6X  $         463 64% 63%

Source: FactSet financial data and analytics, company filings.