Comp Tables as of Feb. 24, 2020: Multiples compress

Average trading multiples for U.S.-focused operators are 2.4X 2020 sales and 12.2X 2020 EBITDA, down from with last week’s 2.5X and 13.0X, respectively.

Canada-focused operators still trade at a premium over U.S. operators, despite a smaller market and lower margins, with the multiple rising to 5.0X 2020 sales and 12.6X 2020 EBITDA from last week’s 5.3X and 14.9X, respectively.

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. 24, 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  $          201  $             246 2.1X 12.2X  $     118 153% 17%
Acreage Holdings ACRGF  $          627  $             627 1.7X 19.9X  $     376 133% 8%
Cansortium CNTMF  $             27  $             117 1.2X 4.7X  $       95 215% 27%
Columbia Care CCHWF  $          775  $             775 2.6X 17.5X  $     299 265% 15%
Cresco Labs CRLBF-US  $       2,224  $         2,224 4.2X 18.5X  $     529 303% 23%
Curaleaf Holdings CURLF  $       4,105  $         4,188 4.7X 17.9X  $    884 255% 26%
Green Thumb Industries GTBIF  $       1,690  $         1,751 3.7X 14.6X  $     471 117% 26%
Harvest Health & Recreation HRVSF  $       1,105  $         1,404 2.2X 10.2X  $     634 430% 22%
iAnthus Capital Holdings ITHUF  $          199  $             302 1.3X 8.2X  $     234 168% 16%
Liberty Health Sciences LHSIF  $          165  $             168 n.m. n.m.  n.m. n.m. n.m.
Medicine Man Technologies MDCL  $          218  $             326 2.2X 8.3X  $      151 5% 26%
MedMen Enterprises MMNFF  $          193  $             692 2.5X n.m.  $    282 61% -10%
MJardin Group MJARF  $               8  $             146 3.1X 24.7X  $       48 84% 12%
Planet 13 Holdings PLNHF  $          266  $             266 2.9X 9.7X  $       93 46% 29%
Slang Worldwide SLGWF-US  $             55  $               55 0.5X 2.7X  $     122 375% 17%
Trulieve Cannabis Corp. TCNNF  $       1,117  $         1,189 3.0X 7.6X  $     395 58% 40%
Vireo Health International Inc. VREOF  $             92  $               92 1.0X 6.3X  $       94 203% 16%
Average – US-Focused Vertically Integrated Operators  $          769  $             857 2.4X 12.2X  $   302 179% 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  $             36  $               36 1.7X n.m.  $       22 155% -11%
Aphria APHA-TSE  $       1,047  $         1,055 2.2X 21.4X  $     481 54% 10%
Aurora Cannabis ACB  $       1,962  $         2,250 8.6X n.m.  $     263 32% -23%
Auxly Cannabis Group XLY-CNQ  $          254  $             258 4.1X n.m.  $       63 n.m. -9%
CannTrust Holdings TRST-CA  $          139  $             139 n.m. n.m.  n.m. n.m. n.m.
Canopy Growth Corp. CGC  $       7,585  $         7,585 15.8X n.m.  $     479 71% -41%
Cronos Group CRON  $       2,362  $         2,362 20.7X n.m.  $      114 221% -35%
Emerald Health Therapeutics EMHTF  $             24  $               40 1.0X n.m.  $       40 87% -15%
Flowr Corp. FLWPF  $             63  $               63 1.1X n.m.  $       56 992% -8%
The Green Organic Dutchman Holdings TGODF  $          110  $             110 2.0X n.m.  $       56 585% -21%
GTEC Holdings GTEC-TSX  $             13  $               17 n.m. n.m.  n.m. n.m. n.m.
Harvest One Cannabis HRVOF  $             10  $               10 0.3X 15.4X  $       37 152% 2%
Hexo Corp. HEXO  $          360  $             360 4.3X n.m.  $       84 82% -32%
Organigram Holdings OGI  $          422  $             441 3.7X 14.1X  $      119 63% 26%
Tilray TLRY  $       1,940  $         2,219 7.5X n.m.  $     297 70% -14%
Village Farms International VFF  $          241  $             315 1.3X 6.4X  $     235 24% 21%
WeedMD WMD-CA  $             80  $             100 1.2X 5.6X  $       83 281% 22%
Average – Canada-Focused Vertically Int. Ops.  $          979  $         1,021 5.0X 12.6X  $    162 205% -9%
Name Ticker Market Cap Enterprise Value EV/Sales 2020E EV/EBITDA 2020E Sales 2020E Sales Growth 2020E EBITDA Margin 2020E
Hemp / CBD
cbdMD YCBD  $             65  $               65 0.8X n.m.  $        77 124% -7%
Charlotte’s Web Holdings CWBHF  $          613  $             613 4.2X 33.3X  $      147 48% 13%
CV Sciences CVSI  $             95  $               95 1.3X 6.7X  $        75 34% 19%
Elixinol Global ELLXF  $             47  $               47 2.1X n.m.  $       22 4% -40%
Emerald Health Therapeutics EMHTF  $             24  $               40 1.0X n.m.  $       40 87% -15%
Green Growth Brands GGBXF  $          114  $             214 1.3X n.m.  $      162 225% 1%
Neptune Wellness Solutions NEPT-CA  $          188  $             188 2.9X n.m.  $       64 182% -2%
Average – Hemp / CBD  $          164  $             180 2.0X 20.0X  $      84 101% -5%
Name Ticker Market Cap Enterprise Value EV/Sales 2020E EV/EBITDA 2020E Sales 2020E Sales Growth 2020E EBITDA Margin 2020E
Pharmaceutical
Arena Pharmaceuticals ARNA  $       2,632  $         2,632 n.m. n.m.  $        11 -99% n.m.
Cara Therapeutics CARA  $          778  $             778 29.3X n.m.  $       27 28% n.m.
Corbus Pharmaceuticals Holdings CRBP  $          397  $             397 44.4X n.m.  $         9 -76% n.m.
GW Pharmaceuticals GWPH  $       3,708  $         3,708 6.9X n.m.  $     537 75% 8%
MediPharm Labs Corp. MEDIF  $          299  $             299 2.1X 7.9X  $     141 40% 27%
Ultragenyx Pharmaceutical RARE  $       3,406  $         3,406 18.9X n.m.  $    180 73% n.m.
Zynerba Pharmaceuticals ZYNE  $          107  $             107 n.m. n.m.  $          – n.m. n.m.
Average – Pharmaceutical  $       1,618  $         1,618 20.3X 7.9X  $    129 7% 18%
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  $             99  $               99 4.7X n.m.  $       21 69% -51%
Canopy Rivers CNPOF  $          154  $             154 4.9X 8.8X  $       32 136% 55%
Greenlane Holdings GNLN  $             98  $               98 0.5X n.m.  $     183 -2% -3%
GrowGeneration Corp. GRWG  $          234  $             234 1.7X 16.2X  $     135 68% 11%
Innovative Industrial Properties IIPR  $       1,707  $         1,462 12.8X 14.8X  $     114 183% 86%
KushCo Holdings KSHB  $          149  $             160 0.6X n.m.  $     247 44% -1%
MediPharm Labs Corp. LABS-CA  $          297  $             297 2.1X 7.8X  $     141 40% 27%
New Age Beverages Corp. NBEV  $          193  $             207 0.7X n.m.  $    295 13% -1%
Scotts Miracle-Gro Co. SMG  $       6,747  $         8,917 2.7X 15.2X  $ 3,353 5% 18%
Supreme Cannabis Co. FIRE-CA  $          100  $             167 2.7X n.m.  $       62 74% -4%
The Valens Co. VGWCF  $          406  $             406 3.1X 7.1X  $     132 168% 43%
Average – Ancillary Products & Services  $          926  $         1,109 3.3X 11.6X  $   429 73% 16%

Source: FactSet financial data and analytics, company filings and Investor Intelligence analysis.