Average trading multiples for U.S.-focused operators compressed to 2.0X 2020 sales and 9.9X 2020 EBITDA from last week’s 2.2X and 11.9X, respectively.
Canada-focused operators still trade at a premium on sales compared to U.S. operators, despite a smaller market and lower margins, with the multiple compressing to 3.9X 2020 sales and 8.8X 2020 EBITDA from last week’s 4.6X and 12.1X, respectively.
The large compression in the Canadian multiple is due to Harvest One dropping off the table with a shift to negative EBITDA for 2020, removing last week’s 17.5X.
The declines in stock prices also compressed multiples. The average decline for U.S.-focused vertically integrated operators is 19% for the week and 43% year to date, while the average decline for the Canadian-focused vertically integrated operators is 24% for the week and 48% year to date.
For context, the S&P 500 declined 12.3% for the week and 14.8% year to date.
We have also added a list of cannabis-focused special purpose acquisition companies (SPAC or “blank-check companies”). These are publicly traded equities of shell companies with only a management team and capital that are looking to acquire companies operating in the cannabis sector.
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 spreadsheet for more details about each company, including estimates for 2020 and 2021.
Priced as of March 9, 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 | $ 174 | $ 219 | 1.9X | 10.9X | $ 118 | 153% | 17% |
| Acreage Holdings Inc. | ACRGF | $ 525 | $ 525 | 1.7X | 35.7X | $ 311 | 100% | 5% |
| Cansortium Inc. | CNTMF | $ 23 | $ 112 | 1.2X | 4.5X | $ 95 | 215% | 27% |
| Columbia Care Inc. | CCHWF | $ 755 | $ 755 | 2.3X | 11.4X | $ 327 | 296% | 20% |
| Cresco Labs Inc. | CRLBF-US | $ 1,969 | $ 1,969 | 3.7X | 16.4X | $ 529 | 303% | 23% |
| Curaleaf Holdings Inc. | CURLF | $ 3,830 | $ 3,913 | 4.4X | 16.1X | $ 884 | 288% | 28% |
| Green Thumb Industries Inc. | GTBIF | $ 1,405 | $ 1,466 | 3.1X | 12.2X | $ 471 | 117% | 26% |
| Harvest Health & Recreation Inc. | HRVSF | $ 1,045 | $ 1,343 | 2.1X | 9.8X | $ 634 | 430% | 22% |
| iAnthus Capital Holdings Inc. | ITHUF | $ 146 | $ 250 | 1.1X | 6.8X | $ 234 | 168% | 16% |
| Liberty Health Sciences Inc. | LHSIF | $ 138 | $ 141 | n.m. | n.m. | n.m. | n.m. | n.m. |
| Medicine Man Technologies Inc. | MDCL | $ 158 | $ 266 | 1.8X | 6.8X | $ 151 | 5% | 26% |
| MedMen Enterprises Inc. | MMNFF | $ 155 | $ 654 | 2.6X | n.m. | $ 252 | 53% | -18% |
| MJardin Group Inc. | MJARF | $ 8 | $ 145 | 3.1X | 24.9X | $ 47 | 84% | 12% |
| Planet 13 Holdings Inc. | PLNHF | $ 253 | $ 253 | 2.7X | 9.2X | $ 93 | 46% | 29% |
| SLANG Worldwide Inc. | SLGWF-US | $ 47 | $ 47 | 0.4X | 2.3X | $ 121 | 375% | 17% |
| Trulieve Cannabis Corp. | TCNNF | $ 1,034 | $ 1,107 | 2.8X | 7.1X | $ 395 | 58% | 40% |
| Vireo Health International Inc. | VREOF | $ 72 | $ 72 | 0.8X | 5.0X | $ 93 | 203% | 16% |
| Average – US-Focused Vertically Integrated Operators | $ 690 | $ 779 | 2.2X | 11.9X | $ 297 | 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 | $ 33 | $ 33 | 1.6X | n.m. | $ 21 | 154% | -11% |
| Aphria Inc. | APHA-TSE | $ 931 | $ 944 | 2.0X | 19.4X | $ 475 | 53% | 10% |
| Aurora Cannabis Inc. | ACB | $ 1,738 | $ 2,028 | 7.7X | n.m. | $ 264 | 32% | -23% |
| Auxly Cannabis Group Inc. | XLY-CNQ | $ 205 | $ 209 | 3.4X | n.m. | $ 62 | n.m. | -9% |
| CannTrust Holdings Inc. | TRST-CA | $ 118 | $ 118 | n.m. | n.m. | n.m. | n.m. | n.m. |
| Canopy Growth Corp. | CGC | $ 6,957 | $ 6,957 | 14.5X | n.m. | $ 479 | 71% | -41% |
| Cronos Group Inc. | CRON | $ 2,227 | $ 2,227 | 19.6X | n.m. | $ 113 | 221% | -34% |
| Emerald Health Therapeutics Inc. | EMHTF | $ 28 | $ 44 | 1.1X | n.m. | $ 39 | 87% | -15% |
| Flowr Corp. | FLWPF | $ 40 | $ 40 | 0.7X | n.m. | $ 56 | 992% | -8% |
| Green Organic Dutchman Holdings Ltd. | TGODF | $ 96 | $ 96 | 1.7X | n.m. | $ 55 | 585% | -21% |
| GTEC Holdings Ltd. | GTEC-TSX | $ 11 | $ 16 | n.m. | n.m. | n.m. | n.m. | n.m. |
| Harvest One Cannabis Inc. | HRVOF | $ 11 | $ 11 | 0.3X | 17.5X | $ 36 | 151% | 2% |
| HEXO Corp. | HEXO | $ 305 | $ 305 | 3.6X | n.m. | $ 85 | 84% | -32% |
| OrganiGram Holdings Inc. | OGI | $ 381 | $ 400 | 3.4X | 12.8X | $ 119 | 63% | 26% |
| Tilray Inc. | TLRY | $ 1,736 | $ 2,015 | 7.6X | n.m. | $ 267 | 60% | -21% |
| Village Farms International Inc. | VFF | $ 223 | $ 297 | 1.3X | 6.0X | $ 235 | 24% | 21% |
| WeedMD Inc. | WMD-CA | $ 67 | $ 88 | 1.1X | 5.0X | $ 82 | 281% | 22% |
| Average – Canada-Focused Vertically Int. Ops. | $ 889 | $ 931 | 4.6X | 12.1X | $ 159 | 204% | -9% | |
| 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 | $ 48 | $ 48 | 0.7X | n.m. | $ 65 | 109% | -5% |
| Charlotte’s Web Holdings Inc. | CWBHF | $ 504 | $ 504 | 3.4X | 27.4X | $ 146 | 48% | 13% |
| CV Sciences Inc. | CVSI | $ 73 | $ 73 | 1.0X | 8.3X | $ 71 | 28% | 12% |
| Elixinol Global Ltd. | ELLXF | $ 29 | $ 29 | 1.5X | n.m. | $ 19 | 8% | -53% |
| Emerald Health Therapeutics Inc. | EMHTF | $ 28 | $ 44 | n.m. | n.m. | n.m. | n.m. | n.m. |
| Green Growth Brands Inc. | GGBXF | $ 52 | $ 151 | 1.2X | n.m. | $ 126 | 169% | -17% |
| Neptune Wellness Solutions Inc. | NEPT-CA | $ 158 | $ 158 | 2.5X | n.m. | $ 63 | 181% | -2% |
| Average – Hemp / CBD | $ 127 | $ 144 | 1.7X | 17.9X | $ 82 | 90% | -9% |
| 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 | $ 2,248 | $ 2,248 | n.m. | n.m. | $ 7 | -99% | n.m. |
| Cara Therapeutics Inc. | CARA | $ 647 | $ 647 | 33.3X | n.m. | $ 19 | -2% | n.m. |
| Corbus Pharmaceuticals Holdings Inc. | CRBP | $ 300 | $ 300 | 33.5X | n.m. | $ 9 | -76% | n.m. |
| GW Pharmaceuticals Plc | GWPH | $ 2,679 | $ 2,679 | 5.0X | n.m. | $ 536 | 72% | -4% |
| MediPharm Labs Corp. | MEDIF | $ 204 | $ 204 | 1.5X | 5.5X | $ 138 | 40% | 27% |
| Ultragenyx Pharmaceutical Inc. | RARE | $ 2,727 | $ 2,727 | 15.2X | n.m. | $ 180 | 73% | n.m. |
| Zynerba Pharmaceuticals Inc. | ZYNE | $ 80 | $ 80 | n.m. | n.m. | $ – | n.m. | n.m. |
| Average – Pharmaceutical | $ 1,269 | $ 1,269 | 17.7X | 5.5X | $ 127 | 1% | 11% |
| 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 | $ 65 | $ 65 | 3.1X | n.m. | $ 21 | 69% | -51% |
| Canopy Rivers Inc. | CNPOF | $ 102 | $ 102 | 3.3X | 5.9X | $ 31 | 133% | 55% |
| Greenlane Holdings Inc. | GNLN | $ 68 | $ 68 | 0.4X | n.m. | $ 174 | -6% | -2% |
| GrowGeneration Corp. | GRWG | $ 167 | $ 167 | 1.2X | 11.4X | $ 137 | 72% | 11% |
| Innovative Industrial Properties Inc. | IIPR | $ 1,387 | $ 1,201 | 10.4X | 12.1X | $ 115 | 159% | 86% |
| KushCo Holdings Inc. | KSHB | $ 102 | $ 113 | 0.5X | n.m. | $ 242 | 42% | -1% |
| MediPharm Labs Corp. | LABS-CA | $ 204 | $ 204 | 1.5X | 5.5X | $ 138 | 40% | 27% |
| New Age Beverages Corp. | NBEV | $ 133 | $ 147 | 0.5X | n.m. | $ 295 | 13% | -1% |
| Scotts Miracle-Gro Co. | SMG | $ 6,360 | $ 8,530 | 2.5X | 14.5X | $ 3,353 | 5% | 18% |
| Supreme Cannabis Co. Inc. | FIRE-CA | $ 65 | $ 132 | 2.2X | n.m. | $ 61 | 72% | -4% |
| Valens GroWorks Corp. | VGWCF | $ 280 | $ 280 | 2.1X | 5.0X | $ 131 | 158% | 43% |
| Average – Ancillary Products & Services | $ 812 | $ 1,001 | 2.5X | 9.1X | $ 427 | 69% | 16% | |
| 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.
