Comp tables as of Feb. 10: Estimates and multiples drop

Average trading multiples for U.S.-focused operators are 2.5X 2020 sales and 12.5X 2020 EBITDA, down from last week’s 2.6X and 13.4X, respectively.

The big changes are that consensus revenue expectations dropped for Harvest Health & Recreation (-8% for 2020 and 13% for 2021) and Curaleaf (-2% for 2020 and -8% for 2021).

Canada-focused operators still traded at a premium to the U.S. operators but showed declines week over week to 3.0X 2020 sales and 14.6X EBITDA from 5.3X and 15.5X, respectively, as Aurora Cannabis’ guide down and 20% drop in the stock price has pressured the sector overall.

Aurora’s consensus sales estimates have declined 38% for 2020 and 31% for 2021, and the consensus EBITDA is down 41% for 2021, though it still trades at 38.8X consensus EBITDA and 51X the CA$51 million EBITDA in the new covenant.

This is a very high multiple, so Aurora had better show that it can generate EBITDA well in excess of the minimum specified by the covenant.

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 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 as well as 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 [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.

Prices as of Feb. 10, 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  $          244  $             289 2.5X 14.4X  $        118 153% 17%
Acreage Holdings ACRGF  $          706  $             706 1.8X 21.7X  $        386 139% 8%
Cansortium CNTMF  $             37  $             126 1.3X 5.0X  $           95 215% 27%
Columbia Care CCHWF  $          793  $             793 2.6X 17.9X  $        299 265% 15%
Cresco Labs CRLBF-US  $       2,243  $         2,243 4.2X 18.0X  $        539 310% 23%
Curaleaf Holdings CURLF  $       4,633  $         4,716 5.3X 19.4X  $        890 288% 27%
Green Thumb Industries GTBIF  $       1,719  $         1,781 3.7X 14.1X  $        477 120% 26%
Harvest Health & Recreation HRVSF  $       1,194  $         1,492 2.5X 10.8X  $        589 392% 23%
iAnthus Capital Holdings ITHUF  $          219  $             323 1.3X 7.9X  $        247 177% 17%
Liberty Health Sciences LHSIF  $          169  $             172 n.m. n.m.  n.m. n.m. n.m.
Medicine Man Technologies MDCL  $          228  $             337 1.9X 9.4X  $        179 5% 20%
MedMen Enterprises MMNFF  $          232  $             731 2.6X n.m.  $        285 62% -10%
MJardin Group MJARF  $               8  $             145 3.1X 24.8X  $           47 84% 12%
Planet 13 Holdings PLNHF  $          234  $             234 2.5X 8.5X  $           93 46% 29%
Slang Worldwide SLGWF-US  $             48  $               48 0.4X 2.3X  $        121 375% 17%
Trulieve Cannabis Corp. TCNNF  $       1,117  $         1,189 3.0X 7.5X  $        397 59% 40%
Vireo Health International VREOF  $             90  $               90 1.0X 6.2X  $           93 203% 16%
Average – US-Focused Vertically Integrated Operators  $          818  $             907 2.5X 12.5X  $        303 181% 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  $             45  $               45 1.6X 18.6X  $           28 180% 9%
Aphria APHA-TSE  $       1,096  $         1,106 2.3X 22.4X  $        480 55% 10%
Aurora Cannabis ACB  $       1,763  $         1,962 6.5X n.m.  $        301 45% -16%
Auxly Cannabis Group XLY-CNQ  $          272  $             276 4.4X n.m.  $           62 n.m. -9%
CannTrust Holdings TRST-CA  $          159  $             159 n.m. n.m.  n.m. n.m. n.m.
Canopy Growth Corp. CGC  $       7,118  $         7,118 14.6X n.m.  $        487 78% -44%
Cronos Group CRON  $       2,486  $         2,486 21.2X n.m.  $        117 230% -33%
Emerald Health Therapeutics EMHTF  $             31  $               47 1.2X n.m.  $           38 83% -37%
Flowr Corp. FLWPF  $          126  $             126 2.1X n.m.  $           60 911% -8%
The Green Organic Dutchman Holdings TGODF  $          143  $             143 2.6X n.m.  $           56 592% -21%
GTEC Holdings GTEC-TSX  $             13  $               18 n.m. n.m.  n.m. n.m. n.m.
Harvest One Cannabis HRVOF  $             13  $               13 0.4X 20.4X  $           37 152% 2%
Hexo Corp. HEXO  $          349  $             349 4.1X n.m.  $           84 83% -32%
Organigram Holdings OGI  $          389  $             409 3.4X 12.9X  $        120 63% 26%
Tilray TLRY  $       1,805  $         2,085 6.9X n.m.  $        301 73% -14%
Village Farms International VFF  $          248  $             322 1.4X 6.6X  $        235 24% 21%
WeedMD WMD-CA  $             98  $             119 1.5X 6.7X  $           82 281% 22%
Average – Canada-Focused Vertically Int. Ops.  $          950  $             987 4.9X 14.6X  $        166 204% -8%
Name Ticker Market Cap Enterprise Value EV/Sales 2020E EV/EBITDA 2020E Sales 2020E Sales Growth 2020E EBITDA Margin 2020E
Hemp / CBD
cbdMD YCBD  $             68  $               68 0.8X n.m.  $           81 135% -3%
Charlotte’s Web Holdings CWBHF  $          694  $             694 4.7X 37.7X  $        147 48% 13%
CV Sciences CVSI  $          106  $             106 1.4X 7.4X  $           75 34% 19%
Elixinol Global ELLXF  $             58  $               58 2.6X n.m.  $           22 4% -40%
Emerald Health Therapeutics EMHTF  $             31  $               47 1.2X n.m.  $           38 83% -37%
Green Growth Brands GGBXF  $             79  $             178 0.9X 14.9X  $        191 265% 6%
Neptune Wellness Solutions NEPT-CA  $          205  $             205 2.6X 9.3X  $           79 212% 28%
Average – Hemp / CBD  $          177  $             194 2.1X 17.3X  $           90 112% -2%
Name Ticker Market Cap Enterprise Value EV/Sales 2020E EV/EBITDA 2020E Sales 2020E Sales Growth 2020E EBITDA Margin 2020E
Pharmaceutical
Arena Pharmaceuticals ARNA  $       2,772  $         2,772 n.m. n.m.  $           11 -99% n.m.
Cara Therapeutics CARA  $          830  $             830 31.3X n.m.  $           27 28% n.m.
Corbus Pharmaceuticals Holdings CRBP  $          421  $             421 47.0X n.m.  $             9 -76% n.m.
GW Pharmaceuticals GWPH  $       3,977  $         3,977 7.4X n.m.  $        537 75% 8%
MediPharm Labs Corp. MEDIF  $          275  $             275 2.0X 7.3X  $        140 40% 27%
Ultragenyx Pharmaceutical RARE  $       3,639  $         3,639 20.4X n.m.  $        178 77% -163%
Zynerba Pharmaceuticals ZYNE  $          117  $             117 n.m. n.m.  $            – n.m. n.m.
Average – Pharmaceutical  $       1,719  $         1,719 21.6X 7.3X  $        129 8% -42%
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  $          109  $             109 4.0X n.m.  $           28 115% -25%
Canopy Rivers CNPOF  $          179  $             179 41.0X 3.0X  $             4 -67% n.m.
Greenlane Holdings GNLN  $             85  $               85 0.5X n.m.  $        183 -2% -3%
GrowGeneration Corp. GRWG  $          245  $             245 1.8X 17.0X  $        135 68% 11%
Innovative Industrial Properties IIPR  $       1,536  $         1,293 11.3X 13.1X  $        114 183% 86%
KushCo Holdings KSHB  $          161  $             172 0.7X n.m.  $        247 44% -1%
MediPharm Labs Corp. LABS-CA  $          274  $             274 1.9X 7.2X  $        140 40% 27%
New Age Beverages Corp. NBEV  $          157  $             171 0.6X n.m.  $        295 13% -1%
Scotts Miracle-Gro Co. SMG  $       6,969  $         9,139 2.7X 15.6X  $     3,353 5% 18%
Supreme Cannabis Co. FIRE-CA  $          109  $             148 1.6X 11.3X  $           94 97% 14%
Valens GroWorks Corp. VGWCF  $          352  $             352 2.7X 6.2X  $        131 168% 43%
Average – Ancillary Products & Services  $          925  $         1,106 6.3X 10.5X  $        429 60% 17%