July 26, 2024 – This week’s Viridian Valuation Tracker takes the 31 U.S. MSOs on which we rank credit quality weekly, and compares them against their respective 2025 EBITDA multiples. We removed the bottom five credits and any companies that do not have analyst coverage. The remaining 14 are shown on the graph abov.
This generates an “attractiveness” index by weighting multiples vs. risk.
The blue bar depicts the EV / 2025 EBITDA multiple. The red bar shows the relative credit ranking of the companies as ranked against each other. The green line depicts an attractiveness index formed by taking the EV/2025 EBITDA multiple multiplied by the square root of the credit index (to prevent overstating the role of safety vs cheapness).
The resulting graph shows the most attractive stocks on the left. Note that companies like Green Thumb (GTII: CSE) are not on many investors’ most attractive list because of their relatively high multiple; however, the number one safety ranking more than offsets the high multiple in this analysis.
On the other side of the scale, Schwazze (SHWX: CBOE) appears to be relatively cheap on an EBITDA multiple basis. However, its high credit risk offsets that and renders the stock relatively unattractive in our analysis.
View This Week’s Viridian Valuation Tracker to See Our Valuation Analysis for All 12 Cannabis Industry Sectors
About The Viridian Cannabis Deal Tracker
Launched in January 2015, and having analyzed more than $75B 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, Hemp, and Psychedelics industries. Our insights help companies, investors, lenders and acquirers make informed capital allocation decisions. Each week the Deal Tracker provides proprietary data and market intelligence on transactions, including:
– Deals by Industry Sector (Track the Flow of Capital and M&A Deals by Industry Sector)
– 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 (Track the Flow of Deals by State and Country)
– Credit Ratings (Leverage and Liquidity Ratios)
Contact
Scott Greiper
CEO
Viridian Capital Advisors, LLC
646.330.0704
sgreiper@viridianca.com
