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

What Makes Aphria Valuable?


Dec. 4 2020, Updated 10:53 a.m. ET

Aphria’s value

Investors often look at valuations to determine whether a stock is trading cheap or at a premium before making an investment decision. In its commitment to take over Aphria, Green Growth discussed what makes Aphria valuable. Green Growth indicated value in “Aphria’s veteran greenhouse industry and pharmaceutical operations” and its “Canadian supply and wholesale agreements.” 

One of the most important considerations about Green Growth’s assessment of value appears to indicate that on a standalone basis, Aphria’s production capacity and its supply agreements can create value for any partner that can bring retail experience and access to the US market with deep pockets.

We’ve already seen that Constellation Brands and more recently, Altria, two big US players, have established partnerships with Canopy Growth and Cronos Group, respectively.

The above chart shows cannabis industry valuations. We have discussed valuations in depth along with valuations for companies (HMMJ) including Aphria (APHA), Canopy Growth (WEED), Tilray (TLRY), Organigram (OGRMF), and others. Read Which Cannabis Stocks Look Cheap in December to learn more.

Continue reading to learn about other updates on Aphria last week.

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