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How Does Planet 13 Holdings’ Valuation Multiple Stack Up with Peers?

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Valuation multiple

Although Planet 13 Holdings’ (PLNHF) (PLTH) stock price has increased since the beginning of 2019, its forward EV-to-sales multiple has fallen as analysts have raised their revenue estimates. As of April 2, the company was trading at a forward EV-to-sales multiple of 1.31x compared to 1.35x at the beginning of 2019. In comparison, MedMen Enterprises (MMEN) (MMNFF), Canopy Growth Corporation (WEED), and Aurora Cannabis (ACB) were trading at a forward EV-to-sales multiple of 3.95x, 19.07x, and 17.23x, respectively.

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Analysts’ recommendations

Of the three analysts that follow Planet 13 Holdings, one analyst is favoring a “strong buy,” while the remaining two analysts are favoring a “buy” rating. Analysts have given the stock a 12-month price target of 4.83 Canadian dollars, which represents a rise of 111.1% from its April 2 closing price of 2.29 Canadian dollars.

Peers’ comparisons

Of the seven analysts that follow MedMen, two analysts are favoring a “strong buy,” while the remaining five analysts are favoring “buy” recommendations. Analysts’ average 12-month price target stood at 7.97 Canadian dollars, which represents a rise of 99.3% from its stock price of 4.0 Canadian dollars.

Of the 11 analysts that cover Aurora Cannabis, eight analysts have given the stock a “buy” rating, while two are favoring a “hold,” and one analyst is favoring “sell.” Analysts’ average 12-month price target stood at 13.75 Canadian dollars, which represents a rise of 13.7% from its stock price of 12.09 Canadian dollars.

Of the 15 analysts that follow Canopy Growth, eight analysts have given the stock a “buy” rating, while six analysts are favoring a “hold,” and one analyst is favoring a “sell” recommendation. Analysts’ average 12-month price target stood at 70.54 Canadian dollars, which represents a return potential of 22.5% from 57.60 Canadian dollars.

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