On October 9, Tilray (TLRY) announced that it completed the acquisition of a distribution company in Latin America, which it says will help the company produce and market medical cannabis-based products in Chile and the rest of Latin America. Cannabis companies such as Canopy Growth (WEED) (CGC), Aurora Cannabis (ACB) (ACBFF), and Aphria (APHQF) have also established their presence in regions outside of Canada.
During the day, Tilray’s stock lost almost $11, or 7%, to close the day at $129. It’s not surprising to see these kinds of wild swings in Tilray’s stock, which has lately been subject to wild speculation.
Tilray’s valuation also reached significantly higher levels this month compared to a month ago. Tilray was trading at 89.5x on the day, which was much higher than other cannabis companies (HMMJ). Its EV-to-sales multiple over the last month has increased 88% from 47.5x. Similarly, Tilray’s EV-to-EBITDA (enterprise value-to-earnings before interest, tax, depreciation, and amortization) reached 536.4x, which is much higher than the other companies’ multiples. Its multiple over the last month increased 88% from 284.9x.
To learn how Tilray’s multiple compares with Canopy Growth (CGC) (WEED), HEXO (HEXO), and Cronos Group (CRON), read Cannabis Sector Valuations before the Big Day in October.