Aurora Cannabis’s valuation
Since Aurora Cannabis (ACB) has risen almost 80% in 2019, let’s look at how the company’s valuation stacks up against its peers and its historical average. As of April 8, Aurora Cannabis was trading at a forward EV-to-sales multiple of 14.3x, which was above the peer median of 6.2x. The peers’ median includes companies like Canopy Growth (WEED), Tilray (TLRY), and Aphria (APHA).
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Aurora Cannabis’s multiple essentially means that at the current levels, investors are paying ~14.3 times per unit of the company’s next 12-month sales. On average, the company’s peers were paid just about six times per unit of sales during the same period. Aurora Cannabis was also trading at a premium to its historical two-year average of 10.3x.
Aurora Cannabis was trading at an EV-to-EBITDA multiple of 59x compared to peers’ median of 24x. The company was also trading at a premium to its historical average multiple of 32.4x over the past two-year period. Aurora Cannabis’s valuation has increased over the past year. The company is establishing a prominent position in the Canadian and global cannabis market.
Read Do WEED, ACB, TLRY, and APHA Look Attractive at These Valuations? to compare Aurora Cannabis’s valuation with its peers (HMMJ).