Comparing with the median
If we compare them to the industry median (HMMJ), the EV-to-EBITDA (enterprise value-to-EBITDA) multiples of the five other cannabis stocks under review in this series confirm what we’ve learned from their EV-to-sales multiples.
These stocks are trading at higher valuation multiples in January given that their prices have risen in the last month. Though their performances indicate that their valuations have become expensive compared to last month, it’s important to consider the industry median chart in the previous article as well as how the industry median multiples compare over a longer period of time. In doing so, you may conclude that the industry average multiple is still trading at a discount to its past performance.