In this part, we’ll discuss the month-over-month change in the EV-to-sales multiples of the nine cannabis stocks (HMMJ) that we discussed in Part 1. In this part, we’ll discuss the first five stocks.
In the above chart, you can see that the valuation multiples of all five cannabis stocks fell on November 30–December 26. Canopy Growth (WEED) was trading at 17x on December 26—compared to 20.7x at the end of November. During the past two years, Canopy Growth traded at a median of 12.6, which indicates that although the valuations have dropped month-over-month in December, it commands a premium over the past two years at the current level.
Aurora Cannabis (ACB) was trading at 7.6x—down from 8.4x at the end of November. The stock was trading at a discount to its two-year average of 9.0x. Tilray (TLRY) was also trading lower month-over-month on December 26 at 48.8x from 71.0x. The stock was trading at a discount to its two-year average of 69.8x.
Aphria (APH) (APHA) was trading at a discount month-over-month at 2.8x from 3.9x—compared to its two-year average of 10.2x. OrganiGram (OGI) (OGRMF) was trading at 2.3x—down from 5.6x month-over-month. OrganiGram traded at an average of 5.6x in the past two years.
Next, we’ll discuss the other four stocks’ forward EV-to-sales multiples.