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EV-to-EBITDA Multiples: CRON, HEXO, CNTTF, and Others

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Five other cannabis companies

In this part of the series, we’ll discuss the forward EV-to-EBITDA multiples for the other give cannabis companies that we didn’t discuss in the previous part.

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Comparing the valuations

In the above chart, you can see that except for Cronos Group, the other four cannabis stocks (MJ) were trading at a discount to the peers. OrganiGram (OGRMF) was trading at 10.8x compared to the peers’ median of 17.8x. CannTrust (CNTTF) was trading at 17.7x, while HEXO (HEXO) was trading at 17.4x. Supreme Cannabis (SPRWF) was trading at 11.8x.

Cronos Group (CRON) was trading at a forward multiple of 133.0x. The company’s valuation multiple appreciated from 101.5x last month on January 18.

Conclusion

Overall, the cannabis peers discussed in this series saw an appreciation compared to December when they hit a low point and since our update on January 18. Investors’ sentiment towards the cannabis sector has been lifted after a slew of positive events including OrganiGram and Aphria reporting their earnings.

Investors’ sentiment was also lifted by more investment firms initiating their coverage. We’ll continue to update our readers on the valuation multiples, so check back regularly.

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