uploads///Forward EV to EBITDA Multiple for Cannabis Sector

Analyzing the Cannabis Sector’s EV-to-EBITDA Multiple


Oct. 25 2018, Updated 7:32 a.m. ET

Forward EV-to-EBITDA multiple

In this part of the series, we’ll discuss the forward EV-to-EBITDA median multiple of nine cannabis stocks as of October 23.

Article continues below advertisement


In the above chart, the yellow line represents the median EV-to-EBITDA multiple of nine cannabis stocks including Canopy Growth (WEED), Aurora Cannabis (ACBFF), Aphria (APHQF), and Tilray (TLRY). The median EV-to-EBITDA of the nine cannabis stocks as of October 23 stood at 34x, which declined from 44.6x as of October 9 when we published a similar update.

When we look at the average level of 33.4x since January 2017, we see that cannabis stocks might have corrected. The conclusion is similar to what we determined when we looked at the median forward EV-to-sales multiple for the cannabis sector in the above chart. The market sentiments (MJ) are running at an all-time low. There could be more selling in the cannabis space in the coming days.

Next, we’ll compare the nine cannabis stocks’ current and previous levels since our last update on October 9.


More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.