In the spotlight of Viridian Capital Advisors' latest Weekly Valuation Report are 16 Tier 2 and 3 U.S. cultivation and retail cannabis companies, each boasting market capitalizations between $10 million and $200 million.
This deep dive into the sector, amidst a notably quiet week for equity issues, brings to the forefront the newly available 2025 analyst consensus estimates, illuminating the evolving valuation trends within this dynamic market.
The report provides an insightful examination of the financial landscape for these cannabis enterprises, offering key observations on their current and projected standings.
Valuation Metrics
The analysis provides a snapshot of the sector's financial health and prospects. For 2024, the median Enterprise Value (EV) to EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) ratio stands at 6.51x for the ten companies with available analyst estimates. This ratio, a key indicator of valuation, is projected to decline to 4.78x by 2025 for seven of these companies.
This means that the market's valuation of these cannabis companies relative to their earnings is expected to decrease, which could be seen as them being valued more conservatively by investors or potentially becoming more financially efficient, among other factors.
The report highlights a distribution of values significantly impacted by outliers such as Planet 13 (OTC: PLNHF), …
Full story available on Benzinga.com
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