Beyond Amazon And Coca-Cola: Why Cannabis Is Catching Up To Blue Chip Stocks In Profitability
A recent report by Viridian Capital Advisors explores the valuation and growth prospects of cannabis stocks against those of well-established sectors like alcohol, tobacco, pharmaceuticals, healthcare products and food.
The report looks closely at the value and growth of 295 companies from 13 different industries to compare how much they’re worth against how fast they’re expected to grow over the next several years (Enterprise Value to 2024 consensus EBITDA multiples against 2023-2025 Revenue CAGR).
Undervalued Options
Multi-state operators (MSOs) within the cannabis sector demonstrate a compelling investment profile.
They are valued at an 8.24x EV/2024 consensus EBITDA multiple, a significant increase from 4.8x recorded on 6/24/22, yet this valuation is substantially lower compared to other industry groups.
Despite this, MSOs boast a notable 2024 EBITDA margin of 26.2%, showcasing their strong profitability amid a competitive landscape.
This places MSOs just behind tobacco giants with an EBITDA margin …