Cannabis comp tables as of Jan. 13: Multiples expanding 5-10%

Sales and EBITDA multiples for both U.S.- and Canada-focused vertically integrated cannabis operators are on the rise.

Average trading multiples for U.S.-focused operators are 2.7X 2020 sales and 13.4X 2020 EBITDA, up from 2.6X and 12.6X respectively last week.

Canada-focused operators still trade at a premium at 5.3X 2020 sales and 17.3X 2020 EBITDA, up from 4.8X and 15.7X.

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).

The shares outstanding and net debt levels for most companies have been adjusted for future dilution by including in-the-money warrants, options, convertible debt and shares to be issued in pending acquisitions.

The comp tables 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 equity 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.

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

These comp tables compute enterprise value as the greater of market capitalization or market capitalization plus net debt. This is a middle road. It 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.

Are there companies missing from this table? A metric you believe is relevant to include? A feature you’d like to see?

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

Priced as of Jan. 13, 2020.

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  $          321  $             366 3.1X 18.2X  $        118 153% 17%
Acreage Holdings Inc. ACRGF  $          734  $             734 1.9X 21.4X  $        392 143% 9%
Cansortium Inc. CNTMF  $             37  $             126 1.3X 5.0X  $           95 215% 27%
Columbia Care Inc. CCHWF  $          728  $             728 2.3X 14.1X  $        318 287% 16%
Cresco Labs Inc. CRLBF-US  $       2,516  $         2,516 4.5X 20.2X  $        557 324% 22%
Curaleaf Holdings Inc. CURLF  $       5,031  $         5,114 5.5X 19.2X  $        934 299% 28%
Green Thumb Industries Inc. GTBIF  $       2,012  $         2,073 4.4X 16.6X  $        475 119% 26%
Harvest Health & Recreation Inc. HRVSF  $       1,392  $         1,684 2.7X 12.1X  $        634 429% 22%
iAnthus Capital Holdings Inc. ITHUF  $          264  $             368 1.5X 9.0X  $        247 177% 17%
Liberty Health Sciences Inc. LHSIF  $          166  $             171 n.m. n.m.  n.m. n.m. n.m.
Medicine Man Technologies Inc. MDCL  $          249  $             357 2.0X 10.0X  $        179 5% 20%
MedMen Enterprises Inc. MMNFF  $          309  $             808 2.8X n.m.  $        285 62% -10%
MJardin Group Inc. MJARF  $             12  $             149 3.1X 24.9X  $           48 84% 12%
Planet 13 Holdings Inc. PLNHF  $          269  $             269 2.9X 9.8X  $           93 46% 29%
SLANG Worldwide Inc. SLGWF-US  $             67  $               67 0.5X 3.2X  $        124 375% 17%
Trulieve Cannabis Corp. TCNNF  $       1,130  $         1,203 3.0X 7.5X  $        398 59% 40%
Vireo Health International Inc. VREOF  $          137  $             137 1.4X 9.2X  $           95 203% 16%
Average – US-Focused Vertically Integrated Operators  $          904  $             992 2.7X 13.4X  $        312 186% 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  $             48  $               48 1.7X 19.5X  $           28 181% 9%
Aphria Inc. APHA-TSE  $       1,386  $         1,460 2.8X 25.2X  $        521 58% 11%
Aurora Cannabis Inc. ACB  $       1,757  $         2,107 5.0X n.m.  $        423 73% -4%
Auxly Cannabis Group Inc. XLY-CNQ  $          292  $             296 4.7X n.m.  $           64 n.m. -9%
CannTrust Holdings Inc. TRST-CA  $          187  $             187 n.m. n.m.  n.m. n.m. n.m.
Canopy Growth Corp. CGC  $       8,634  $         8,634 17.1X n.m.  $        506 80% -42%
Cronos Group Inc. CRON  $       2,786  $         2,786 23.2X n.m.  $        120 233% -34%
Emerald Health Therapeutics Inc. EMHTF  $             39  $               55 1.4X n.m.  $           39 83% -37%
Flowr Corp. FLWPF  $          169  $             169 2.5X n.m.  $           66 933% 3%
Green Organic Dutchman Holdings Ltd. TGODF  $          151  $             151 2.6X n.m.  $           57 592% -21%
GTEC Holdings Ltd. GTEC-TSX  $             16  $               21 n.m. n.m.  n.m. n.m. n.m.
Harvest One Cannabis Inc. HRVOF  $             21  $               21 0.6X 31.6X  $           37 153% 2%
HEXO Corp. HEXO  $          398  $             398 4.5X n.m.  $           89 90% -29%
OrganiGram Holdings Inc. OGI  $          355  $             356 3.0X 14.3X  $        119 64% 21%
Tilray Inc. TLRY  $       1,950  $         2,230 7.3X n.m.  $        306 76% -14%
Village Farms International Inc. VFF  $          298  $             371 1.4X 6.6X  $        267 39% 21%
WeedMD Inc. WMD-CA  $             99  $             120 1.4X 6.7X  $           84 281% 22%
Average – Canada-Focused Vertically Int. Ops.  $       1,093  $         1,142 5.3X 17.3X  $        182 210% -7%
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  $             61  $               61 0.7X n.m.  $           87 148% -5%
Charlotte’s Web Holdings Inc. CWBHF  $          756  $             756 5.1X 41.0X  $        147 48% 13%
CV Sciences Inc. CVSI  $          122  $             122 1.6X 8.6X  $           75 34% 19%
Elixinol Global Ltd. ELLXF  $             71  $               71 2.1X n.m.  $           34 31% -26%
Emerald Health Therapeutics Inc. EMHTF  $             39  $               55 1.4X n.m.  $           39 83% -37%
Green Growth Brands Inc. GGBXF  $          183  $             282 1.4X 23.1X  $        195 266% 6%
Neptune Wellness Solutions Inc. NEPT-CA  $          247  $             247 2.7X 10.9X  $           92 235% 25%
Average – Hemp / CBD  $          211  $             228 2.2X 20.9X  $           96 121% -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  $       2,365  $         2,365 n.m. n.m.  $           12 -99% n.m.
Cara Therapeutics Inc. CARA  $          749  $             749 28.2X n.m.  $           27 28% n.m.
Corbus Pharmaceuticals Holdings Inc. CRBP  $          426  $             426 47.7X n.m.  $             9 -76% n.m.
GW Pharmaceuticals Plc GWPH  $       3,597  $         3,597 6.6X n.m.  $        541 77% 11%
MediPharm Labs Corp. MEDIF  $          438  $             438 2.5X 8.9X  $        174 60% 28%
Ultragenyx Pharmaceutical Inc. RARE  $       3,414  $         3,414 18.6X n.m.  $        184 83% -183%
Zynerba Pharmaceuticals Inc. ZYNE  $          133  $             133 n.m. n.m.  $            – n.m. n.m.
Average – Pharmaceutical  $       1,589  $         1,589 20.7X 8.9X  $        135 12% -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  $             99  $               99 3.6X n.m.  $           28 115% -25%
Canopy Rivers Inc. CNPOF  $          191  $             191 14.6X 3.1X  $           13 -2% 469%
Greenlane Holdings Inc. GNLN  $          120  $             120 0.6X n.m.  $        191 2% -3%
GrowGeneration Corp. GRWG  $          190  $             190 1.4X 13.2X  $        135 68% 11%
Innovative Industrial Properties Inc. IIPR  $       1,164  $             990 10.2X 12.3X  $           97 137% 83%
KushCo Holdings Inc. KSHB  $          177  $             188 0.8X n.m.  $        247 44% -1%
MediPharm Labs Corp. LABS-CA  $          441  $             441 2.5X 9.0X  $        174 60% 28%
New Age Beverages Corp. NBEV  $          150  $             164 0.6X n.m.  $        295 13% -1%
Scotts Miracle-Gro Co. SMG  $       6,309  $         7,941 2.4X 13.4X  $     3,327 4% 18%
Supreme Cannabis Co. Inc. FIRE-CA  $          132  $             171 1.8X 12.8X  $           94 95% 14%
Valens GroWorks Corp. VGWCF  $          379  $             379 2.8X 6.4X  $        133 167% 45%
Average – Ancillary Products & Services  $          850  $             988 3.8X 10.0X  $        430 64% 58%

Source: FactSet financial data and analytics, company filings.