How Does iAnthus’s Valuation Multiple Compare to Its Peers’?


Jun. 28 2019, Updated 1:05 p.m. ET

Stock performance

On June 28, iAnthus Capital Holdings (ITHUF) (IAN) stock was trading marginally lower. YTD (year-to-date), iAnthus has lost 22% of its value. During the same period, its peers Planet 13 Holdings (PLNHF) (PLTH), MedMen Enterprises (MMNFF) (MMEN), and Curaleaf Holdings (CURLF) (CURA) have returned 73.2%, -9.6%, and 47.4%, respectively.

iAnthus reported its first-quarter earnings results on May 30. You can read about the company’s first-quarter performance in iAnthus Capital Holdings’ Q1 Earnings: Key Takeaways.

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Valuation multiple

On June 27, iAnthus was trading at a forward EV-to-sales (enterprise value-to-sales) multiple of 3.31x. On the same day, its peers Planet 13, MedMen, and Curaleaf were trading at forward EV-to-sales multiples of 2.73x, 3.39x, and 4.36x, respectively.

Analysts’ estimates and recommendations

Analysts expect iAnthus to report revenue of $157.8 million in 2019, which implies a potential rise of ~4,500% from $3.4 million in 2018. In the same period, analysts expect iAnthus to report a net loss of $15.5 million, which represents an improvement of 32.6% from its loss of $22.9 million in 2018.

Of the eight analysts that follow iAnthus, two have given it “strong buy” ratings, while the remaining six have given it “buys.” On average, analysts have a 12-month price target of 12.12 Canadian dollars on the stock, which implies a potential upside of 182.5% from its price of 4.29 Canadian dollars on June 27. On June 3, Eight Capital initiated coverage on iAnthus with a “buy” rating and a 12-month price target of 12.0 Canadian dollars.

On June 26, iAnthus’s peer Curaleaf announced that it was acquiring two businesses in Arizona. If you’re interested in learning more about Curaleaf’s acquisitions, be sure to read Curaleaf Announces Two Acquisitions for $25.5 million.


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