Cannabis comp tables as of Jan. 7: US multiples still trail Canadian

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.

U.S.-focused operators are currently trading at 2.6X 2020 sales and 12.6X 2020 EBITDA, while Canada-focused operators trade at a premium at 4.8X 2020 sales and 2020 15.7X EBITDA.

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

As we have previously written and stated at our Investor Intelligence Conference in early December 2019, there is no excess cash in cannabis.

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?

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 January 7, 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  $          248  $             293 2.5X 14.6X  $        118 153% 17%
Acreage Holdings Inc. ACRGF  $          691  $             691 1.8X 20.2X  $        392 143% 9%
Cansortium Inc. CNTMF  $             36  $             126 1.3X 5.0X  $           95 215% 27%
Columbia Care Inc. CCHWF  $          713  $             713 2.2X 13.8X  $        318 287% 16%
Cresco Labs Inc. CRLBF-US  $       2,548  $         2,548 4.5X 18.0X  $        561 326% 25%
Curaleaf Holdings Inc. CURLF  $       4,345  $         4,428 4.7X 16.6X  $        934 299% 28%
Green Thumb Industries Inc. GTBIF  $       1,856  $         1,917 4.0X 15.4X  $        475 119% 26%
Harvest Health & Recreation Inc. HRVSF  $       1,517  $         1,816 2.8X 13.1X  $        651 447% 21%
iAnthus Capital Holdings Inc. ITHUF  $          232  $             335 1.4X 8.2X  $        247 177% 17%
Liberty Health Sciences Inc. LHSIF  $          143  $             148 n.m. n.m.  n.m. n.m. n.m.
Medicine Man Technologies Inc. MDCL  $          243  $             351 2.0X 9.8X  $        179 5% 20%
MedMen Enterprises Inc. MMNFF  $          316  $             815 2.9X n.m.  $        286 62% -10%
MJardin Group Inc. MJARF  $             13  $             151 3.1X 25.2X  $           48 84% 12%
Planet 13 Holdings Inc. PLNHF  $          266  $             266 2.8X 9.7X  $           93 46% 29%
SLANG Worldwide Inc. SLGWF-US  $             69  $               69 0.6X 3.3X  $        124 375% 17%
Trulieve Cannabis Corp. TCNNF  $       1,125  $         1,197 3.0X 7.5X  $        398 59% 40%
Vireo Health International Inc. VREOF  $          126  $             126 1.3X 8.5X  $           95 203% 16%
Average – US-Focused Vertically Integrated Operators  $          852  $             941 2.6X 12.6X  $        313 188% 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  $             49  $               49 1.7X 19.9X  $           28 181% 9%
Aphria Inc. APHA-TSE  $       1,192  $         1,192 2.2X 19.4X  $        530 59% 12%
Aurora Cannabis Inc. ACB  $       1,891  $         2,241 5.2X n.m.  $        433 77% -3%
Auxly Cannabis Group Inc. XLY-CNQ  $          278  $             282 4.4X n.m.  $           64 n.m. -9%
CannTrust Holdings Inc. TRST-CA  $          184  $             184 n.m. n.m.  n.m. n.m. n.m.
Canopy Growth Corp. CGC  $       7,398  $         7,398 14.6X n.m.  $        505 80% -43%
Cronos Group Inc. CRON  $       2,467  $         2,467 20.4X n.m.  $        121 236% -35%
Emerald Health Therapeutics Inc. EMHTF  $             37  $               53 1.3X n.m.  $           39 83% -37%
Flowr Corp. FLWPF  $          171  $             171 2.6X n.m.  $           67 933% 3%
Green Organic Dutchman Holdings Ltd. TGODF  $          144  $             144 2.5X n.m.  $           58 546% -19%
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 31.3X  $           38 153% 2%
HEXO Corp. HEXO  $          356  $             356 4.0X n.m.  $           89 90% -29%
OrganiGram Holdings Inc. OGI  $          327  $             329 2.6X 9.8X  $        127 69% 26%
Tilray Inc. TLRY  $       1,737  $         2,017 6.6X n.m.  $        307 76% -13%
Village Farms International Inc. VFF  $          306  $             379 1.4X 6.7X  $        267 39% 21%
WeedMD Inc. WMD-CA  $          102  $             123 1.5X 6.8X  $           84 281% 22%
Average – Canada-Focused Vertically Int. Ops.  $          981  $         1,025 4.8X 15.7X  $        184 208% -6%
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  $             51  $               51 0.6X n.m.  $           87 148% -5%
Charlotte’s Web Holdings Inc. CWBHF  $          735  $             735 5.0X 39.9X  $        147 48% 13%
CV Sciences Inc. CVSI  $          119  $             119 1.6X 8.3X  $           75 34% 19%
Elixinol Global Ltd. ELLXF  $             71  $               71 2.1X n.m.  $           34 31% -26%
Emerald Health Therapeutics Inc. EMHTF  $             37  $               53 1.3X n.m.  $           39 83% -37%
Green Growth Brands Inc. GGBXF  $          203  $             302 1.3X 13.5X  $        224 283% 10%
Neptune Wellness Solutions Inc. NEPT-CA  $          246  $             246 2.7X 10.9X  $           92 235% 25%
Average – Hemp / CBD  $          209  $             225 2.1X 18.2X  $        100 123% 0%
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  $       2,369  $         2,369 n.m. n.m.  $           12 -99% n.m.
Cara Therapeutics Inc. CARA  $          706  $             706 26.6X n.m.  $           27 28% n.m.
Corbus Pharmaceuticals Holdings Inc. CRBP  $          386  $             386 43.1X n.m.  $             9 -76% n.m.
GW Pharmaceuticals PLC GWPH  $       3,116  $         3,116 5.8X n.m.  $        541 79% 11%
MediPharm Labs Corp. MEDIF  $          416  $             416 2.4X 8.4X  $        174 60% 28%
Ultragenyx Pharmaceutical Inc. RARE  $       2,650  $         2,650 14.3X n.m.  $        185 85% -182%
Zynerba Pharmaceuticals Inc. ZYNE  $          129  $             129 n.m. n.m.  $            – n.m. n.m.
Average – Pharmaceutical  $       1,396  $         1,396 18.4X 8.4X  $        135 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  $          106  $             106 3.8X n.m.  $           28 115% -25%
Canopy Rivers Inc. CNPOF  $          174  $             174 13.3X 2.8X  $           13 -2% 469%
Greenlane Holdings Inc. GNLN  $          127  $             127 0.7X n.m.  $        191 2% -3%
GrowGeneration Corp. GRWG  $          172  $             172 1.3X 12.4X  $        131 72% 11%
Innovative Industrial Properties Inc. IIPR  $       1,063  $             888 9.2X 11.1X  $           97 137% 83%
KushCo Holdings Inc. KSHB  $          185  $             213 0.8X n.m.  $        257 47% 0%
MediPharm Labs Corp. LABS-CA  $          416  $             416 2.4X 8.4X  $        174 60% 28%
New Age Beverages Corp. NBEV  $          135  $             149 0.5X n.m.  $        295 13% -1%
Scotts Miracle-Gro Co. SMG  $       6,058  $         7,690 2.3X 13.0X  $     3,327 4% 18%
Supreme Cannabis Co. Inc. FIRE-CA  $          148  $             186 1.9X 13.1X  $           96 96% 15%
Valens GroWorks Corp. VGWCF  $          337  $             337 2.5X 5.6X  $        133 167% 45%
Average – Ancillary Products & Services  $          811  $             951 3.5X 9.5X  $        431 65% 58%

Source: FactSet financial data and analytics, company filings.