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Cannabis Stocks’ EV-to-EBITDA Multiples on October 23

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Updated

Forward EV-to-EBITDA multiples

Continuing our discussion on the valuation multiples for the cannabis sector on October 23, we’ll discuss how the nine cannabis companies’ (HMMJ) forward EV-to-EBITDA valuation multiples stack up against each other compared to the levels on October 9.

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Comparing cannabis stocks

In the above chart, all nine cannabis stocks experienced a decline in the forward EV-to-EBITDA multiple as of October 23—compared to October 9. Tilray (TLRY) was trading at a forward EV-to-EBITDA multiple of 431.5x, which declined from 471x on October 9. Canopy Growth (WEED) was also trading at a discount at 70.9x on October 23—compared to the valuation multiple of 83.4x on October 9.

Cronos Group’s (CRON) valuation multiple declined to 51.8x on October 23 from 56.8x on October 9. During this period, HEXO’s (HEXO) forward EV-to-EBITDA multiple declined to 49.4x from 65.4x. For Aurora Cannabis (ACBFF), the valuation multiple declined to 34x. Aurora Cannabis was trading right at the median level, as you can see in the above chart.

Organigram (OGRMF) was also trading at a discount at 18x on October 23 from 23.9x on October 9. CannTrust was trading at 17.5x, which declined from 20.9x on October 9. Supreme Cannabis was trading at a discount at 7x—down from 8.8. Aphria was trading at 18.5x—down from 20.4x.

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