Viridian's Thursday Valuation Tracker
Frank Colombo, CFA | Director of Data Analytics | Viridian Capital Advisors
January 12, 2023 (Investorideas.com Newswire) This week's Viridian Value Tracker focuses on the valuation statistics of the 15 U.S Cultivation & Retail companies with over $100M market cap.
We aimed to establish benchmark year-end 2022 measures to gauge valuation changes during 2023.
- The table below shows the quartiles, median, and average for the selected peer group on a range of valuation metrics. We tend to avoid using average measures due to the frequent presence of outliers.
- The median EV/ 2023 consensus EBITDA for the group is now 5.28x, near the bottom of the range we have seen over the last two years. The lowest quartile or lowest 25 of companies are below 3.89x 2023 EBITDA. Similarly, the highest 25% of companies are above 7.85x.
- We update these and other valuation measures weekly. The Valuation Tracker can filter from a database of over 350 companies in the Viridian Capital-defined 12 cannabis subsectors. We find that the more cohesive the selected peer group is, the more accurate the valuation measures become.
Launched in January 2015, and having analyzed more than $60B in deals, the Viridian Cannabis Deal Tracker is a proprietary data service that monitors and analyzes capital raise and M&A activity in the legal cannabis, CBD, and psychedelics industries. Each week the Deal Tracker provides proprietary data and market intelligence on transactions, including:
- Deals by Industry Sector (To track the flow of capital and M&A Deals by one of 12 Sectors - from Cultivation to Brands to Software)
- Deal Structure (Equity/Debt for Capital Raises, Cash/Stock/Earnout for M&A)
- Principals to the Transaction (Issuer/Investor/Lender/Acquirer)
- Key Deal Terms (Deal Size, Valuation, Pricing, Warrants, Cost of Capital)
- Deals by Location of Issuer/Buyer/Seller (To Track the Flow of Capital and M&A Deals by State and Country)
Credit Ratings (Leverage and Liquidity Ratios)
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The information contained herein is for informational purposes and is not intended as a research report. It should not be construed as Viridian recommending investment in cannabis companies or as a solicitation to buy or sell any security or engage in a particular investment strategy. Investment in cannabis companies entails substantial risk. Before acting on any information, you should consider whether it is suitable for your particular circumstances and consult all available material, and, if necessary, seek professional advice.
Viridian Capital Advisors and its affiliates, as well as their respective partners, directors, shareholders, and employees, may have a position in the securities mentioned herein or may make purchases and/or sales from time to time. Viridian Capital Advisors, through broker-dealer services provided by Bradley Woods & Co. Ltd., (Member FINRA/SIPC), may act, or may have acted in the past, as a financial advisor to certain companies mentioned herein and may receive, or may have received, a remuneration for their services from those companies.
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About Viridian Capital Advisors, LLC
Launched in 2014, Viridian Capital Advisors was one of the first and now leading, corporate finance, advisory and M&A practices in the legal Cannabis/CBD industries, and now in the Psychedelics sector. We represent companies, investors, lenders, buyers and sellers. Our advisory practice is meant to help "institutionalize" our clients before they go to market for capital or M&A. We do this by helping to build a professional Board of Directors, sophisticated financial models and valuation analyses, exit strategies and strategic advisory services for our clients. Our investment banking practice raises capital executes M&A are done our New York City based broker-dealer, Bradley Woods & Co. Ltd.
Viridian is widely recognized as the industry leader in research and capital markets data/market intelligence through the Viridian Deal Tracker. Launched in January 2015, and having analyzed more than $60 billion in deals, the Viridian Deal Tracker is a proprietary data service that monitors and analyzes investment, M&A activity and capital markets trends in the Cannabis/CBD and Psychedelics industries. The Deal Tracker has become a trusted and valuable source for companies, investors, lenders and sellers/acquirers to make informed capital allocation decisions.
Marijuana remains illegal under federal law. The federal government does not recognize marijuana to have any medicinal value. Marijuana cultivation, possession, consumption, sales, and distribution are illegal under federal laws and also certain state laws. Investors in cannabis may be subject to law enforcement actions. Please note that there are differences in marijuana laws from one state, county, or city to another. Furthermore there are substantial risks associated with investing in cannabis companies, including, without limitation, changes in applicable laws, rules, and regulations, risks associated with the economic environment, the financing markets, and risks associated with a company’s ability to execute on its business plan.
Viridian Capital Advisors, LLC
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