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How Does MedMen’s Valuation Multiple Compare with Its Peers?

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Nov. 20 2020, Updated 1:45 p.m. ET

Valuation multiple

Since the beginning of 2019, MedMen Enterprises (MMEN) (MMNFF) has fallen by 3.6% as of April 12. The decline in MedMen’s stock price has also lowered its valuation multiple. As of April 12, the company was trading at a forward EV-to-sales multiple of 3.63x compared to 3.98x at the beginning of 2019. On the same day, its peers, Planet 13 Holdings (PLNHF) (PLTH), VIVO Cannabis (VIVO) and Wayland Group (MRRCF) (WAYL) were trading at a forward multiple of 1.84x, 3.74x, and 1.97x, respectively.

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Analysts’ recommendations

Of the six analysts that cover MedMen, two analysts are favoring a “strong buy,” and remaining four analysts are favoring a “buy” recommendations. Analysts have given MedMen a 12-month price target of 8.09 Canadian dollars implying an upside potential of 118.1% from its stock price of 3.71 Canadian dollars.

Peer comparisons

Of the total three analysts that cover Planet 13 Holdings (PLNHF)(PLTH), one analyst has given a “strong buy,” while remaining two analysts have given a “buy” rating. Analysts’ 12-month price target for Planet 13 stands at 4.83 Canadian dollars, which represents an upside potential of 52.5% from its stock price of 4.83 Canadian dollars as of April 12.

Of the two analysts that follow VIVO Cannabis, one analyst is favoring a “strong buy” rating, while one analyst is recommending a “buy.” Analysts have given a price target of 2.33 Canadian dollars, which represents a return potential of 170.4% from its stock price of 0.86 Canadian dollars.

The two analysts that cover Wayland Group have given a “strong buy” rating for the stock. They have given a 12-month price target of 2.75 Canadian dollars, which implies an upside potential of 175% from its stock price of $1.00.

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