Average trading multiples for U.S.-focused operators stand at 2.0X 2020 sales and 10.3X 2020 EBITDA, up slightly versus last week’s 1.9X and 9.7X, respectively. The average stock price remained flattish.
Canada-focused operators still trade at a premium on sales compared to U.S. operators, despite a smaller market and lower margins, expanding to 5.7X 2020 sales and 13.5X 2020 EBITDA from last week’s 5.0X and 12.0X, respectively.
As noted in our recent Virtual Briefing and shown on slides 20-26 of the deck, consumer stocks bottomed at an average of 2.4X sales and 7.5X EBITDA in the past two market corrections.
This implies risk to multiples for 2020, though for 2021, U.S.-focused operators average only 1.3X sales and 4.8X EBITDA – implying multiple upsides as long as the 2021 estimates do not get cut dramatically.
The average stock price for U.S.-focused vertically integrated operators was flat for the week and remains down 53% year-to-date, while the average for Canadian-focused vertically integrated operators was flat for the week and down 50% year-to-date.
For context, the S&P 500 increased 2% for the week and is down 12% year-to-date.
As we noted in our commentary on the correction, cannabis stocks are “high beta,” meaning they will move more than the market in both good times and bad.
These comp tables provide a benchmark for private investors to evaluate existing and future investments and a way for companies to judge their own valuations for current and future capital raises, 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).
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 and ancillary products and services).
These tables also list the equity market capitalization, enterprise value (EV), sales and EBITDA estimates as well as the EV/sales and EV/EBITDA multiples on those projections.
Everything is converted, calculated into and listed as 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?
Email us at investorintelligence@mjbizdaily.com and let us know.
Download the PDF or the sortable excel spreadsheet for more details about each company, including estimates for 2020 and 2021.
Priced as of April 14, 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 | $ 135 | $ 181 | 1.8X | 17.2X | $ 102 | 303% | 10% |
| Acreage Holdings | ACRGF | $ 233 | $ 233 | 0.9X | n.m. | $ 246 | 58% | -3% |
| Cansortium | CNTMF | $ 18 | $ 108 | 1.1X | 4.3X | $ 95 | 215% | 27% |
| Columbia Care | CCHWF | $ 487 | $ 487 | 2.2X | n.m. | $ 220 | 184% | -6% |
| Cresco Labs | CRLBF-US | $ 1,433 | $ 1,433 | 2.7X | 13.5X | $ 521 | 298% | 20% |
| Curaleaf Holdings | CURLF | $ 2,832 | $ 2,914 | 4.7X | 18.6X | $ 621 | 181% | 25% |
| Green Thumb Industries | GTBIF | $ 740 | $ 846 | 1.9X | 7.9X | $ 440 | 103% | 24% |
| Harvest Health & Recreation | HRVSF | $ 330 | $ 523 | 2.2X | n.m. | $ 238 | 104% | 4% |
| iAnthus Capital Holdings | ITHUF | $ 31 | $ 135 | 0.7X | 5.2X | $ 197 | 139% | 13% |
| Liberty Health Sciences | LHSIF | $ 106 | $ 108 | n.m. | n.m. | n.m. | n.m. | n.m. |
| Medicine Man Technologies | MDCL | $ 144 | $ 203 | 1.3X | 5.2X | $ 151 | 5% | 26% |
| MedMen Enterprises | MMNFF | $ 377 | $ 377 | 1.6X | n.m. | $ 242 | 51% | -23% |
| MJardin Group | MJARF | $ 8 | $ 145 | 3.2X | 26.0X | $ 45 | 84% | 12% |
| Planet 13 Holdings | PLNHF | $ 155 | $ 155 | 1.7X | 5.6X | $ 93 | 47% | 29% |
| Slang Worldwide | SLGWF-US | $ 27 | $ 27 | n.m. | n.m. | n.m. | n.m. | n.m. |
| Trulieve Cannabis Corp. | TCNNF | $ 1,032 | $ 1,105 | 2.7X | 6.5X | $ 408 | 61% | 41% |
| Vireo Health International | VREOF | $ 43 | $ 43 | 0.5X | 3.1X | $ 89 | 203% | 16% |
| Average – US-Focused Vertically Integrated Operators | $ 478 | $ 531 | 2.0X | 10.3X | $ 247 | 136% | 14% | |
| 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 | $ 18 | $ 18 | 0.9X | n.m. | $ 21 | 152% | -11% |
| Aphria | APHA-TSE | $ 981 | $ 1,007 | 2.2X | 22.5X | $ 453 | 51% | 10% |
| Aurora Cannabis | ACB | $ 1,020 | $ 1,318 | 5.1X | n.m. | $ 256 | 30% | -23% |
| Auxly Cannabis Group | XLY-CNQ | $ 151 | $ 155 | 6.3X | n.m. | $ 25 | 461% | -38% |
| Canopy Growth Corp. | CGC | $ 5,754 | $ 5,754 | 12.3X | n.m. | $ 467 | 68% | -42% |
| Cronos Group | CRON | $ 2,252 | $ 2,252 | 36.8X | n.m. | $ 61 | 158% | -105% |
| Emerald Health Therapeutics | EMHTF | $ 22 | $ 38 | n.m. | n.m. | n.m. | n.m. | n.m. |
| Flowr Corp. | FLWPF | $ 39 | $ 39 | 0.8X | n.m. | $ 47 | 876% | -7% |
| The Green Organic Dutchman Holdings | TGODF | $ 55 | $ 55 | 2.4X | n.m. | $ 23 | 180% | -69% |
| GTEC Holdings | GTEC-TSX | $ 11 | $ 15 | n.m. | n.m. | n.m. | n.m. | n.m. |
| Harvest One Cannabis | HRVOF | $ 8 | $ 10 | 0.7X | n.m. | $ 14 | 55% | -52% |
| Hexo Corp. | HEXO | $ 170 | $ 172 | 2.4X | n.m. | $ 73 | 68% | -31% |
| Organigram Holdings | OGI | $ 269 | $ 289 | 2.7X | 11.5X | $ 108 | 53% | 23% |
| Tilray | TLRY | $ 979 | $ 1,175 | 4.8X | n.m. | $ 243 | 45% | -28% |
| Village Farms International | VFF | $ 155 | $ 230 | 1.2X | 15.7X | $ 188 | 3% | 8% |
| WeedMD | WMD-CA | $ 57 | $ 77 | 1.0X | 4.3X | $ 80 | 323% | 22% |
| Average – Canada-Focused Vertically Int. Ops. | $ 746 | $ 788 | 5.7X | 13.5X | $ 147 | 180% | -25% | |
| Name | Ticker | Market Cap | Enterprise Value | EV/Sales 2020E | EV/EBITDA 2020E | Sales 2020E | Sales Growth 2020E | EBITDA Margin 2020E |
| Hemp / CBD | ||||||||
| cbdMD | YCBD | $ 52 | $ 52 | 0.8X | n.m. | $ 65 | 109% | -5% |
| Charlotte’s Web Holdings | CWBHF | $ 536 | $ 536 | 3.5X | n.m. | $ 153 | 39% | -8% |
| CV Sciences | CVSI | $ 72 | $ 72 | 2.3X | n.m. | $ 32 | -41% | -26% |
| Elixinol Global | ELLXF | $ 33 | $ 33 | 1.8X | n.m. | $ 19 | 4% | -53% |
| Emerald Health Therapeutics | EMHTF | $ 22 | $ 38 | n.m. | n.m. | n.m. | n.m. | n.m. |
| Green Growth Brands | GGBXF | $ 20 | $ 120 | 1.0X | n.m. | $ 122 | 167% | -17% |
| Neptune Wellness Solutions | NEPT-CA | $ 192 | $ 192 | 3.6X | n.m. | $ 53 | 148% | 2% |
| Average – Hemp / CBD | $ 133 | $ 149 | 2.2X | n.m. | $ 74 | 71% | -18% | |
| Name | Ticker | Market Cap | Enterprise Value | EV/Sales 2020E | EV/EBITDA 2020E | Sales 2020E | Sales Growth 2020E | EBITDA Margin 2020E |
| Pharmaceutical | ||||||||
| Arena Pharmaceuticals | ARNA | $ 2,585 | $ 2,585 | n.m. | n.m. | $ 7 | -99% | n.m. |
| Cara Therapeutics | CARA | $ 683 | $ 683 | 35.2X | n.m. | $ 19 | -2% | n.m. |
| Corbus Pharmaceuticals Holdings | CRBP | $ 445 | $ 445 | 36.3X | n.m. | $ 12 | -66% | n.m. |
| GW Pharmaceuticals | GWPH | $ 3,036 | $ 3,036 | 5.7X | n.m. | $ 530 | 70% | -5% |
| MediPharm Labs Corp. | MEDIF | $ 174 | $ 174 | 1.9X | 10.5X | $ 92 | 1% | 18% |
| Ultragenyx Pharmaceutical | RARE | $ 3,511 | $ 3,511 | 19.6X | n.m. | $ 179 | 73% | n.m. |
| Zynerba Pharmaceuticals | ZYNE | $ 96 | $ 96 | n.m. | n.m. | $ – | n.m. | n.m. |
| Average – Pharmaceutical | $ 1,504 | $ 1,504 | 19.7X | 10.5X | $ 120 | -4% | 7% | |
| 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 | $ 111 | $ 111 | 5.2X | n.m. | $ 21 | 69% | -51% |
| Canopy Rivers | CNPOF | $ 108 | $ 108 | 3.6X | 6.5X | $ 30 | 129% | 55% |
| Greenlane Holdings | GNLN | $ 77 | $ 77 | 0.6X | n.m. | $ 135 | -27% | -8% |
| GrowGeneration Corp. | GRWG | $ 184 | $ 184 | 1.4X | 14.4X | $ 133 | 67% | 10% |
| Innovative Industrial Properties | IIPR | $ 1,275 | $ 1,095 | 10.2X | 11.6X | $ 108 | 141% | 88% |
| KushCo Holdings | KSHB | $ 81 | $ 91 | 0.6X | n.m. | $ 149 | 3% | -13% |
| MediPharm Labs Corp. | LABS-CA | $ 173 | $ 173 | 1.9X | 10.4X | $ 92 | 1% | 18% |
| New Age Beverages Corp. | NBEV | $ 143 | $ 164 | 0.6X | n.m. | $ 257 | 1% | -8% |
| Scotts Miracle-Gro Co. | SMG | $ 6,471 | $ 8,642 | 2.5X | 14.6X | $ 3,401 | 6% | 17% |
| Supreme Cannabis Co. | FIRE-CA | $ 76 | $ 143 | 2.4X | n.m. | $ 59 | 73% | -4% |
| The Valens Co. | VGWCF | $ 242 | $ 242 | 2.0X | 4.8X | $ 122 | 144% | 41% |
| Average – Ancillary Products & Services | $ 813 | $ 1,003 | 2.8X | 10.4X | $ 410 | 55% | 13% | |
| Cannabis Special Purpose Acquisition Corporations | ||
| Name | Ticker | Exchange |
| Merida Merger Corp. I | MCMJ | Nasdaq |
| Greenrose Acquisition Corp. | GNRSU | Nasdaq |
| Stable Road Acquisition Corp. | SRACU | Nasdaq |
| Silver Spike Acquisition Corp. | SSPKU | Nasdaq |
| Tuscan Holdings Corp. II | THCA | Nasdaq |
| Tuscan Holdings Corp. | THCB | Nasdaq |
| New Providence Acquisition Corp. | NPAUU | Nasdaq |
| Act II Global Acquisition Corp. | ACTT | Nasdaq |
| Subversive Real Estate Acquisition REIT | SVX.UT-NEOE | NEO |
| Collective Growth Corp. | CGROU | Nasdaq |
Source: FactSet financial data and analytics, company filings and Investor Intelligence analysis.
