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CGC, CRON, APHA, and TLRY’s EV-to-EBITDA Multiples

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Updated

Digging deeper

Previously in this series, we discussed the overall EV-to-EBITDA multiple of nine cannabis stocks. In this part, we’ll discuss each company’s individual valuation multiples. We’ll compare the individual multiples with peers’ median and their respective level since our last update on January 18.

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Comparing valuations

In the above chart, you can see that Aphria (APHA) was trading at a discount to the other three companies. The movement was like what we observed in the EV-to-sales multiple previously in this series. Since our last update, the peers’ (MJ) median remained almost unchanged, while Canopy Growth (WEED) and Aurora Cannabis (ACB) saw a marginal decline in their valuation multiples. Canopy Growth was trading at 107x, while Aurora Cannabis was trading at 34x.

Tilray (TLRY) experienced a large decline in its valuation multiple to 504x from nearly 700x. The stock continued to trade at a premium to its peers. Aphria’s valuation multiple appreciated from 12.1x to 17.8x.

Next, we’ll discuss the valuation multiples for the remaining five cannabis companies.

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