A valuation comparison
In the previous article, we discussed the cannabis industry’s median EV-to-EBITDA (enterprise value-to-EBITDA) multiple. In this article, we’ll discuss how individual cannabis stocks’ valuation multiples compare to the industry median (HMLSF) and their levels in the previous month.
In the chart above, we can see that the valuation multiples of Canopy Growth (WEED) (CGC), Aurora Cannabis (ACB), and Tilray (TLRY) are trading at premiums to the median, similar to what we found in our discussion of the median EV-to-sales multiple. Canopy Growth is trading at a multiple of 110.9x, Aurora Cannabis is trading at a multiple of 34.2x, and Tilray is trading at a multiple of ~700x. On the other hand, Aphria (APHA) is trading at a discount of 12x to the median of 17.7x.
Tilray’s valuation multiple is trading at a significant premium not only to the industry median but also to those of its peers. However, the company’s valuation multiple has fallen month-over-month from ~798x.
Month-over-month, Canopy Growth, Aurora Cannabis, and Aphria have all experienced increases in their valuation multiples driven by the factors we discussed earlier in this series.
Next, we’ll look at the remaining five stocks’ EV-to-EBITDA multiples.