Comp tables as of Feb 3: Multiples mostly flat

Average trading multiples for U.S.-focused operators are 2.6X 2020 sales and 13.4X 2020 EBITDA, roughly flat compared to last week’s 2.7X and 13.4X, respectively.

Canada-focused operators still trade at a premium at 5.3X 2020 sales (flat compared to last week) and 15.5X 2020 EBITDA, down from 17.1X last week.

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 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. 3, 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  $          253  $             299 2.5X 14.8X  $        118 153% 17%
Acreage Holdings ACRGF  $          739  $             739 1.9X 22.8X  $        386 139% 8%
Cansortium CNTMF  $             36  $             125 1.3X 5.0X  $           95 215% 27%
Columbia Care CCHWF  $          869  $             869 2.9X 19.7X  $        299 265% 15%
Cresco Labs CRLBF-US  $       2,522  $         2,522 4.6X 20.2X  $        549 318% 23%
Curaleaf Holdings CURLF  $       5,043  $         5,126 5.6X 20.1X  $        910 293% 28%
Green Thumb Industries GTBIF  $       1,933  $         1,994 4.2X 15.8X  $        477 120% 26%
Harvest Health & Recreation HRVSF  $       1,356  $         1,655 2.6X 11.9X  $        634 429% 22%
iAnthus Capital Holdings ITHUF  $          242  $             346 1.4X 8.4X  $        247 177% 17%
Liberty Health Sciences LHSIF  $          190  $             193 n.m. n.m.  n.m. n.m. n.m.
Medicine Man Technologies MDCL  $          240  $             348 1.9X 9.7X  $        179 5% 20%
MedMen Enterprises MMNFF  $          273  $             772 2.7X n.m.  $        285 62% -10%
MJardin Group MJARF  $               9  $             146 3.1X 24.8X  $           48 84% 12%
Planet 13 Holdings PLNHF  $          240  $             240 2.6X 8.7X  $           93 46% 29%
Slang Worldwide SLGWF-US  $             60  $               60 0.5X 2.9X  $        122 375% 17%
Trulieve Cannabis Corp. TCNNF  $       1,143  $         1,216 3.1X 7.7X  $        397 59% 40%
Vireo Health International VREOF  $          126  $             126 1.3X 8.6X  $           94 203% 16%
Average – US-Focused Vertically Integrated Operators  $          899  $             987 2.6X 13.4X  $        308 184% 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  $             38  $               38 1.4X 15.5X  $           28 181% 9%
Aphria APHA-TSE  $       1,238  $         1,245 2.6X 25.0X  $        483 55% 10%
Aurora Cannabis ACB  $       2,067  $         2,417 6.1X n.m.  $        398 69% -6%
Auxly Cannabis Group XLY-CNQ  $          287  $             291 4.6X n.m.  $           63 n.m. -9%
CannTrust Holdings TRST-CA  $          184  $             184 n.m. n.m.  n.m. n.m. n.m.
Canopy Growth Corp. CGC  $       8,261  $         8,261 16.9X n.m.  $        488 78% -44%
Cronos Group CRON  $       2,644  $         2,644 22.6X n.m.  $        117 230% -33%
Emerald Health Therapeutics EMHTF  $             34  $               50 1.3X n.m.  $           38 83% -37%
Flowr Corp. FLWPF  $          155  $             155 2.6X n.m.  $           61 911% -8%
The Green Organic Dutchman Holdings TGODF  $          140  $             140 2.5X n.m.  $           56 592% -21%
GTEC Holdings GTEC-TSX  $             15  $               20 n.m. n.m.  n.m. n.m. n.m.
Harvest One Cannabis HRVOF  $             17  $               17 0.4X 25.4X  $           37 152% 2%
Hexo Corp. HEXO  $          352  $             352 4.0X n.m.  $           88 90% -29%
Organigram Holdings OGI  $          428  $             446 3.7X 14.1X  $        120 64% 26%
Tilray TLRY  $       1,936  $         2,216 7.3X n.m.  $        303 74% -14%
Village Farms International VFF  $          298  $             371 1.4X 6.6X  $        267 39% 21%
WeedMD WMD-CA  $             96  $             117 1.4X 6.6X  $           83 281% 22%
Average – Canada-Focused Vertically Int. Ops.  $       1,070  $         1,115 5.3X 15.5X  $        175 207% -7%
Name Ticker Market Cap Enterprise Value EV/Sales 2020E EV/EBITDA 2020E Sales 2020E Sales Growth 2020E EBITDA Margin 2020E
Hemp / CBD
cbdMD YCBD  $             69  $               69 0.9X n.m.  $           81 135% -3%
Charlotte’s Web Holdings CWBHF  $          776  $             776 5.3X 42.2X  $        147 48% 13%
CV Sciences CVSI  $          113  $             113 1.5X 7.9X  $           75 34% 19%
Elixinol Global ELLXF  $             58  $               58 1.7X n.m.  $           33 31% -26%
Emerald Health Therapeutics EMHTF  $             34  $               50 1.3X n.m.  $           38 83% -37%
Green Growth Brands GGBXF  $          131  $             230 1.2X 19.1X  $        192 265% 6%
Neptune Wellness Solutions NEPT-CA  $          224  $             224 2.8X 10.0X  $           80 213% 28%
Average – Hemp / CBD  $          201  $             217 2.1X 19.8X  $           92 116% 0%
Name Ticker Market Cap Enterprise Value EV/Sales 2020E EV/EBITDA 2020E Sales 2020E Sales Growth 2020E EBITDA Margin 2020E
Pharmaceutical
Arena Pharmaceuticals ARNA  $       2,494  $         2,494 n.m. n.m.  $           11 -99% n.m.
Cara Therapeutics CARA  $          771  $             771 29.0X n.m.  $           27 28% n.m.
Corbus Pharmaceuticals Holdings CRBP  $          461  $             461 n.m. n.m.  $             9 -76% n.m.
GW Pharmaceuticals GWPH  $       3,547  $         3,547 6.5X n.m.  $        542 77% 11%
MediPharm Labs Corp. MEDIF  $          324  $             324 2.2X 7.8X  $        151 46% 28%
Ultragenyx Pharmaceutical RARE  $       3,197  $         3,197 16.2X n.m.  $        198 97% -146%
Zynerba Pharmaceuticals ZYNE  $          116  $             116 n.m. n.m.  $            – n.m. n.m.
Average – Pharmaceutical  $       1,558  $         1,558 13.5X 7.8X  $        134 12% -36%
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  $          108  $             108 3.9X n.m.  $           28 115% -25%
Canopy Rivers CNPOF  $          193  $             193 14.1X 3.2X  $           14 5% 443%
Greenlane Holdings GNLN  $             88  $               88 0.5X n.m.  $        183 -2% -3%
GrowGeneration Corp. GRWG  $          211  $             211 1.6X 14.7X  $        135 68% 11%
Innovative Industrial Properties IIPR  $       1,542  $         1,297 11.3X 13.1X  $        114 183% 86%
KushCo Holdings KSHB  $          211  $             222 0.9X n.m.  $        247 44% -1%
MediPharm Labs Corp. LABS-CA  $          322  $             322 2.1X 7.7X  $        151 46% 28%
New Age Beverages Corp. NBEV  $          141  $             156 0.5X n.m.  $        295 13% -1%
Scotts Miracle-Gro Co. SMG  $       7,112  $         9,282 2.8X 15.9X  $     3,349 5% 17%
Supreme Cannabis Co. FIRE-CA  $          132  $             170 1.8X 12.9X  $           93 94% 14%
Valens GroWorks Corp. VGWCF  $          353  $             353 2.7X 6.2X  $        132 168% 43%
Average – Ancillary Products & Services  $          947  $         1,128 3.8X 10.5X  $        431 67% 56%