Trading comps

The cannabis sector’s median forward EV-to-EBITDA (enterprise value-to-earnings before interest, tax, depreciation, and amortization) multiple was 23.6x, which declined from 26.5x just a few weeks ago on the back of the declining stock prices. Below, we’ll discuss how six cannabis stocks’ valuation multiples compared with this median as of April 9.

KSHB, IIPR, CTST: How Do Valuations Look in April?

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Trading at a discount

Innovative Industrial Properties (IIPR) continued to trade at a discount to the peer median at 15.6x, but it was trading at a premium to its historical average of 11.1x.

Supreme Cannabis (SPRWF) was another stock that also continued to trade at a discount to the peer median at 11.0x. The stock was also trading at a significant discount to its historical average of 45.3x over the past two years.

Trading at fair value

Aphria (APHA), HEXO (HEXO) and Green Thumb Industries (GTBIF) were trading close to the peer median at 23.9x, 23.6x, and 21.3x, as of April 9, respectively. CannTrust (CTST), on the other hand, dropped significantly to 14.7x from last month. On the other hand, KushCo Holdings (KSHB) was trading at a premium to the peer median (HMMJ) at 42.0x on April 22.

For more updates on the industry, visit Market Realist’s Healthcare page.

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