Cannabis Chart Of The Week: How Much Have MSO Valuation Multiples Changed In The Last Year And Why?
Most cannabis industry observers realize that valuations and valuations multiples for the major MSOs are up Y/O/Y, spurred by the promise of rescheduling.
The chart shows the Enterprise Value to Consensus Next twelve-month (NTM) EBITDA multiples of fourteen major MSOs from 4/14/23 (light green bar) to 4/12/24 (darker green bar).
Valuation multiples are up for 11 of the 14 companies on the chart. Outliers include Jushi (OTC: JUSHF), down 35.5%; TerrAscend (OTC: TSNDF), down 5.2%; and Ascend (OTC: AAWH), down 0.2%
The multiples of the other companies on the chart rose from 3% for Cresco (OTC: CRLBF) to 70% for Curaleaf (OTC: CURLF). The group, in aggregate, had a 39% increase in EV/NTM EBITDA multiple from 6.13x to 8.53x.
The lines on the Graph depict the two possible reasons for multiple changes. If a company’s EV/EBITDA multiple went up, it was either because its Enterprise Value went up, or its EBITDA went down, or some combination of the two. The maroon line shows the percent change in enterprise value, while the orange line shows the …