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EV-to-Sales Valuation Multiple: CRON, HEXO, and Others

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Other cannabis companies

Previously in this series, we compared four cannabis stocks’ forward EV-to-sales multiples. In this part, we’ll discuss the other five cannabis stocks.

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Comparing the valuations

Looking at the above chart, except for Cronos Group (CRON), the four other stocks were trading at or below the peers’ (HMLSF) median in the current month. Since our last update on January 18, all five of the stocks experienced an appreciation in their valuation multiples.

Cronos Group was trading at a forward multiple of 39.9x, which increased from 30.3x on January 18. During the same period, HEXO’s (HEXO) valuation multiples appreciated from 4.9x to 5.3x, while CannTrust (CNTTF) rose from 4.0x to 5.2x.

OrganiGram (OGRMF), which reported its earnings last month, saw its valuation multiple appreciate from 3.4x to 4.0x. Supreme Cannabis (SPRWF) rose from 3.3x to 4.1x during the same period.

OrganiGram (OGRMF) had a stellar quarter with a solid increment in sales YoY (year-over-year). To learn more, read OrganiGram’s Margins Expand, Impact the Bottom Line.

Next, we’ll discuss the EV-to-EBITDA multiple.

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