Comparing with the median
If we compare them to the industry median (HMMJ), the EV-to-EBITDA (enterprise value-to-EBITDA) multiples of the five other cannabis stocks under review in this series confirm what we’ve learned from their EV-to-sales multiples.
Of these five stocks, only Cronos Group (CRON) is trading at a premium to the industry median at 101.0x in January. HEXO (HEXO) is again trading at the median level of 17.7x this month.
OrganiGram Holdings (OGRMF), CannTrust (CNTTF), and Supreme Cannabis (SPRWF) are all trading at discounts to the industry median at 9.9x, 14.4x, and 9.6x, respectively.
These stocks are trading at higher valuation multiples in January given that their prices have risen in the last month. Though their performances indicate that their valuations have become expensive compared to last month, it’s important to consider the industry median chart in the previous article as well as how the industry median multiples compare over a longer period of time. In doing so, you may conclude that the industry average multiple is still trading at a discount to its past performance.