Cronos Group rose
Cronos Group’s (CRON) forward EV-to-sales multiple in December rose to 19.9x from 19.7x on November 30. The increase in the valuation multiple was mainly driven by the catalyst of Altria’s 45% stake in the company. Cronos Group has traded at an average of 15.5x over the past two years. To learn more, read It’s Official: Altria Acquires a Stake in Cronos Group.
Trading at a discount
In contrast to Cronos, the remaining three stocks saw their valuation multiples fall in December. CannTrust’s (TRST) (CNTTF) forward EV-to-sales multiple fell to 3.2x from 3.94x month-over-month. CannTrust traded at an average of 5.1x over the past two years. Supreme Cannabis (SPRWF) was also trading at a discount month-over-month at 2.4x from 2.5x, while the stock averaged 6.5x in the last two years. HEXO (HEXO) was trading lower in December at 2.8x—down from 3.9x a month ago and down from 5.6x over the past two years.
Most cannabis stocks (MJ) appear cheap compared to their past two-year average. Next, we’ll discuss the forward EV-to-EBITDA multiple.